What is a Credit Debt Summons

If you have delinquent credit cards or other unsecured debt, you may receive a summons.

What now???

Credit card companies and other unsecured creditors will try different methods to get you to start making minimum payments and/or start collection including multiple calls, emails and letters.

If these methods do not work, they may decide to place the account with a law firm that specializes in debt collection.

This firm will also attempt to collect by calls, emails and letters.

Again, if these attempts do not work, they can file a CLAIM.

The law firm will submit the CLAIM to your local county courthouse.

After the claim has been filed, a SUMMONS is delivered to the you,

The PLAINTIFF is the creditor or owner of the account. and you are now the DEFENDENT in this CLAIM.

The SUMMONS is designed to GET YOUR ATTENTION!

The SUMMONS will say something like:

You have 30 days (varies by state) to…

“APPEAR AND GIVE AN ANSWER…”

Sounds like you will have to go to court, BUT IT DOES NOT!

It is legalese language that means that if you can PROVE that the CLAIM is invalide with WRITTEN, INDISPUTABE DOCUMENTATION, you have 30 days to submit your “ANSWER” to the court.

In most situations, you owe the debt claimed and cannot provide an ANSWER.

DO NOT IGNORE THE SUMMONS!!!

The law firm/debt collector will give you a month or so to contact them and work out an agreement to repay the amount of the CLAIM.

If you ignore the SUMMONS, a JUDGMENT will most likely be awarded.

Once the JUDGMENT is awarded, the law firm can petition the court for:

• WAGE GARNISHMENTS
• BANK LEIVES
• LIENS ON CERTAIN PROPERTIES

To PREVENT these options, the law firm/debt collector may be willing to accept a SETTLEMENT to satisfy the CLAIM.

These settlements are usually for more that the settlement that can be negotiated BEFORE this debt collection process started.

While accounts are still with the original creditor or with a debt collection company, SETTLEMENTS can range from 40% to 60% of the balance.

But after this legal process has begun, there are other expenses/charges that will be added.

If a SETTLEMENT cannot be negotiated, then a STIPULATED AGREEMENT should be possible.

A STIPULATED AGREEMENT is basically an agreement that is FILED WITH THE COURT that says as long as the terms of the Stipulated Agreement, the PLAINTIFF (Creditor) cannot seek wage garnishment, bank levies or liens.

Once the STIPULATED AGREEMENT is completed, a LETTER OF SATISFACTION is filed with the court and the JUDGMENT is removed.

The law firm is supposed to report the “satisfaction” to the Credit Bureaus (Equifax, Experian, Transunion), but most do not!

You will want to check your Credit Report (wait about 45-60 days) to make sure the account is showing a $0 balance.

“How to Get Errors Removed from” Your Credit Report”

SUMMARY…

If you receive a SUMMONS, do not ignore it!  You have several options to prevent damaging legal action.

Help is Available!