Help! I Received a Judgment for a Debt I Didn’t Know About: What Do I Do?

Have you received a judgment for a debt? Maybe you do not recognize the debt or the company suing you. Chances are this is not a scam and your debt was sold to a debt buyer. In fact, most people do not take the time to find out who is suing them.

So, What Do I Do First?

First, do not throw any of the lawsuit documentation away. The best way to tell if a lawsuit is real, is if the lawsuit was served by a process server. If this is the case, there are real consequences at stake. In California, you must respond within thirty days of receiving the summons and complaint. However, the response time will vary based on the state in which you live.

The company is hoping you will ignore the summons and complaint. Many people ignore the summons and complaint thinking that the charged off debt is no longer collectible. Once a credit card has been unpaid for 120-160 days, many banks will charge off the debt and then sell the right to collect to debt buyers.

Wait, What Does a Debt Buyer Do?

These debt buyers purchase old charged off debts from banks for pennies on the dollar to sue for the entire amount owed. The company needs to provide proof that they have proper ownership of the debt to collect the full amount.

What Steps Can You Take?

Once you have been served, you need to act quickly. If a debt buying company wins, you will end up with a judgment against you which can result in garnished wages. However, you have options to avoid the judgment against you: fight it in court, settle your debt, or file for bankruptcy.

Looking For More Information?

At the Law Office of Daniela Romero, we believe in relationships that are based on trust. Before we work together, we would like to get to know you and we would like you to get to know us. We want you to be sure you are the right fit for us and that we are the perfect fit for you. This will allow you to be completely comfortable sharing intimate and difficult details of your case, so we can offer you representation to the fullest extent of the law. Call us today to set up a free consultation.