Legal Question in Credit and Debt Law in New York

His money should not pay your debt. He is not responsible and cannot be forced to pay. They can sue you and get a money judgment which is just a piece of paper that says you owe the money...which you already know. The judgment would be for more than what you actually owe because they would add interest on the money (at the rate set forth in your credit card agreement) and court costs (the amount of money it cost the credit card company to get the judgment and maybe attorney fees). The judgment entitles the credit card company to seize funds in a bank account (YOUR BANK ACCOUNT ONLY) and/or garnish your wages. Since you said you have NO MONEY and NO JOB, t you are safe, for now...BUT the judgment lasts for 20 years and gets larger each year by 9% so one day, IF you are employed or open a bank account it may come back to haunt you...$200/month is ridiculous since you are not working...they should cut the amount down to 1/5 of what you owe and you should find a way to pay $50-100 a month on that reduced balance so it goes away without having a judgment entered.

If you do not submit a timely answer, they may obtain a judgment which can be enforced through a bank levy or wage garnishment. The judgment may also appear on your credit report. I would strongly suggest that you visit the court clerk to submit an answer to the complaint. This will at least avoid a default judgment for the time being, and will provide you the opportunity to pursue either a dismissal or settlement. Think about the defenses - Do you owe the Plaintiff any money? If so, do you agree that you owe the amount that they are seeking? Was the debt accrued more then 6 years ago? The list goes on and on.

If you have other debts, then you may want to seek the advice of a Bankruptcy attorney. If you do not own significant assets, and are unemployed, you may be eligible for a Chapter 7 discharge. The cost of the bankruptcy might be much less then what you owe to the creditors. If you would like a free consultation to discuss debt relief options, feel free to contact my office.