Baxter & Baxter, LLP

What to Do If You Are Sued by a Credit Card Company

admin — Fri, 20 Apr 2012 18:30:32 +0000

Being sued by a credit card company, a debt collection agency, or other creditor can be a stressful and frightening experience. The most important thing for a person who has been sued is not to ignore the lawsuit. A defendant in a lawsuit must follow the proper procedures within the proper deadlines, or they risk a default judgment being entered against them. This article discusses how a lawsuit works, typical procedures for responding to a lawsuit, and the consequences of the lawsuit.

The Process of Being Sued

If you fall behind on your credit card payments, your lender may sue you. The credit card company may accept payments or a lump sum settlement, but under most circumstances is not required to accept anything less than the agreed upon terms. In many cases, this can mean the entire balance on your credit card.

To initiate the lawsuit, the credit card company or debt collector can file a “Complaint” in small claims court, or other trial court. If the case is filed in small claims court, neither you nor the company will have a lawyer in court. However, the company may have a lawyer assisting them outside of court. If the case is not in small claims court, the company will likely be represented by a lawyer.

After the complaint is filed, you will be served with a “Summons” to appear in court. You can be served in person at home or at work. A family member or co-worker may receive “substituted service” on your behalf. You may also be served by mail or by publication.

Responding to the Lawsuit

As noted above, if you do not respond to the lawsuit in the proper form within the allotted deadline, a judgment may be entered against you. You should read the summons and complaint closely. If you choose to oppose the lawsuit, you must file an “appearance” within the time allowed in the summons. It must comply with the Court’s rules and say the correct things, or a judgment may be entered against you.

If you oppose the lawsuit, you must have a legal reason for doing so. It is typically insufficient to appear in Court to explain why you defaulted on your credit card payments, or to request that the Judge require the company to accept payments. Examples of legal defenses are that the company has sued the wrong person, or that the account was opened by someone other than you without your knowledge.

In some cases, the lawsuit has been filed outside the legal time limit to file such cases. This is known as the “statute of limitations.” Different statutes of limitations may apply depending on what state you live in, and what state the credit card company is located in. The applicable statute of limitations may vary depending on the specific facts of your case, and you should contact a lawyer that defends people from credit card lawsuits to determine of this defense applies.

When a Judgment is Entered

If you lose your case, or if a default judgment is entered against you, the result is the same. The company will get a judgment against you. That entitles them to take certain steps to enforce the judgment, including garnishing your wages or bank accounts, and in some cases, seizing your assets. The full extent of a judgment creditor’s rights may vary depending on what state you live in.

If a creditor garnishes your wages or bank accounts, you may have the right to object. Such objections are referred to as “exceptions.” The amount of the applicable exceptions may vary depending on what state you live in. You must file the proper forms with the court within the proper time allowed.

Discharging Debts through Bankruptcy

If you are overwhelmed by inescapable debt, including credit cards, other loans, and judgments, it is likely you can avoid paying them by filing for bankruptcy. Not all debts are dischargeable, so you should talk to a bankruptcy attorney to find out if you qualify for bankruptcy, and if you can discharge the debts and judgments against you.

Baxter & Baxter, LLP Social Media

admin — Fri, 20 Apr 2012 18:20:20 +0000

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Welcome to our Mini-Site!

beaverton-bankruptcy-attorney-com — Wed, 20 Jul 2011 06:52:09 +0000

Welcome to our mini-website for Portland, Oregon bankruptcy. The attorneys of Baxter & Baxter, LLP, are dedicated advocates for consumers. Baxter & Baxter, LLP, is a Pacific Northwest consumer protection law firm with offices in Oregon and Washington. To visit our firm’s main website, visit www.baxterlaw.com.

The Oregon consumer protection lawyers of the Consumer Litigation Group represent individuals in cases with false credit reports, identity theft cases, unlawful debt collection cases, and consumer fraud cases. The Portland Oregon bankruptcy attorneys, Oregon City bankruptcy attorneys, Hillsboro, Oregon bankruptcy attorneys, and Vancouver Washington bankruptcy lawyers of the Bankruptcy Practice Group represent individuals in Chapter 7 and Chapter 13 bankruptcy. Our mission of committed and zealous consumer advocacy is unrivaled, and our track record of excellence and professionalism is recognized nationwide.

This site includes an aggregation of news stories about business, finance, and politics that bears upon our consumer protection and bankruptcy practice. We hope you will find the stories interesting and useful.

“We are a debt relief agency. We help people file for relief under the Bankruptcy Code.”

How Foreclosure Statistics Could Affect Bankruptcy in Vancouver, Washington

beaverton-bankruptcy-attorney-com — Sat, 02 Jul 2011 01:34:33 +0000

Though the Columbian newspaper has reported that foreclosures statewide, Clark County (which includes Vancouver, WA) remains fourth in the state for number of foreclosures, and fifth in the state for percentage of homes in foreclosure. Cite: Foreclosures decline in Clark County, The Columbian, July 14, 2011. Foreclosure statistics from the real estate and foreclosure website Realty Trac show that foreclosures in Clark County and Vancouver, Washington remain high.

The Columbian article notes that foreclosures are down thirty-five percent from the same time last year. However, the Realty Trac data that the Columbian cites, still shows that some 248 homes are in some state of foreclosure in Clark County, which is much more sparsely populated than King and Snohomish Counties to the north. In gross numbers, the three largest counties in Washington (King, Snohomish and Pierce) have the most homes in foreclosure by a wide margin. Those same counties also lead in terms of percentage of homes in foreclosure, but Clark County is much closer in terms of percentage of homes in foreclosure. The most recent data from Realty Trac shows that one in 659 homes in Clark County are in some stage of foreclosure. This is in comparison to Pacific County (one in 619), Pierce County (one in 474), King County (one in 459) and Snohomish County (one in 351).

The high rate of foreclosures in Clark County may precipitate more new case filings in the Vancouver, Washington Bankruptcy Court. Foreclosures can be an indicator of many different economic influences, including dropping home prices, anemic home sales, tight credit markets, difficulty refinancing mortgages, and more generalized economic factors, such as unemployment. If homeowners are unable to keep up with mortgage payments, they may seek out protection by filing a voluntary bankruptcy petition, and discharging their debts.

In bankruptcy, the debtor can take actions that can further exacerbate the weakness in the housing markets, thereby precipitating more foreclosures. For example, in bankruptcy, the debtor has the option of continuing to pay mortgage payments or abandoning their home and discontinuing the mortgage. If the debtor chooses the latter, another home comes onto the market to be sold by the trustee, thereby increasing supply of homes, with a comparatively lower incentive to recover top dollar on the sale.

If the debtor files a Chapter 13 repayment plan, the debtor may be able to void a second mortgage (also referred to as lien stripping). In this scenario, the consumer may keep making payments on the first mortgage, but if the fair market value of the home is less than the amount owing on the first mortgage, the bankruptcy judge may void the lien held by the second mortgage, and then discharge the second mortgage as a unsecured debt. This can be perceived as a major benefit of filing bankruptcy, particularly in Vancouver, where home prices have fallen precipitously.

In summary, recent housing statistics indicate that foreclosures are fewer in number this year from the same time last year. The Columbian notes that the cause is not yet known. Whether fewer homeowners are falling into default, or whether mortgage lenders are not initiating new foreclosure proceedings due to a backlog of mortgages in arrears. In either case, the likelihood of a large number of foreclosures can significantly impact the number of Vancouver, Washington bankruptcy filings in the next year.