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legalg
legalg, Attorney
Category: Bankruptcy Law
Satisfied Customers: 7395
Experience:  General Practitioner
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What happens when you receive a summons to appear in court

Customer Question

what happens when you receive a summons to appear in court for a credit card debt you can't pay because you are no longer employed and the debtor refused to accept the payment amount you said you could afford?
Submitted: 7 months ago.
Category: Bankruptcy Law
Expert:  legalg replied 7 months ago.
Basically, the credit card company will be able to get a judgment for the amount owing. This allows the company to access one's non exempt property by levying on bank accounts and other property.Unfortunately a credit card company does not have to negotiate- most will, but they are not legally required to. If one has more debt than assets, and there are income issues, one may wish to consider bankruptcy; bankruptcy serves to allow the party to "start over" - basically for unsecured debts, such as credit cards, these are typically erased, or paid pennies on the dollar (depending on the assets/income available). So it is really a good idea to at least consult with a bankruptcy attorney to see if that is a viable option; otherwise one can become buried in their debt . A chapter 7 bankruptcy case does not involve the filing of a plan of repayment as in chapter 13. Instead, the bankruptcy trustee gathers and sells the debtor's nonexempt assets and uses the proceeds of such assets to pay holders of claims (creditors) in accordance with the provisions of the Bankruptcy Code. Part of the debtor's property may be subject to liens and mortgages that pledge the property to other creditors. In addition, the Bankruptcy Code will allow the debtor to keep certain "exempt" property; but a trustee will liquidate the debtor's remaining assets. Accordingly, potential debtors should realize that the filing of a petition under chapter 7 may result in the loss of property. The debtor has no liability for discharged debts. Also an action can be brought against a debt collector that violates the Fair Debt Collection Practices Act- that includes harassment. The fine for that is $1,000 per incident. The FTC oversees this and can assist with that:https://www.consumer.ftc.gov/articles/0149-debt-collection Further questions? Please post here to continue the chat. Satisfied? Kindly rate positively so I receive credit for assisting you.(no additional charges are incurred). Information provided is for educational purposes only. Consultation with a personal attorney is always recommended so your particular facts may be considered. Thank you and take care.
Expert:  legalg replied 7 months ago.
Thank you for using Just Answer.I hope the information provided was useful.Here is a link to the bar association's legal referral site:http://apps.americanbar.org/legalservices/lris/directory/Should you have further questions please post here; otherwise kindly--- Rate Positively---so the site credits me for assisting you.Thank you and take care!

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