If you are sued for unpaid credit card debt and you somehow lost the case, what are the things you need to do in order to satisfy the debt in question? The obvious answer is pay what is due, but if you can't pay the debt, what do you do?
Apart from paying the due amount, you also need to know the state which the judgement is ruled who is your creditor is,what belongings you own, etc.
One of the most common ways to stop a judgment is filing for bankruptcy. When you file for bankruptcy you will get protection that blocks most judgments or encourage creditors to lower the debt cost. However, there are serious and lasting financial consequences to filing a bankruptcy so seek the advice of an attorney first to learn more about bankruptcy protection. Note that you cannot fake a bankruptcy claim because pacers are used by many creditors to determine a person's bankruptcy status.
If say, you're not ready for bankruptcy, another way of working your way out of a judgement is to wait for the creditor to collect their judgments. Most creditors will not bother collection the judgments or wait too long and judgments would reach expiration unless they review them so you can wait and see if your creditor will take action from the judgment they received.
If you lost the case by default because the summons was not sent to you properly, you just might get the court to set aside the ruling but the chances are very slim and when it is set aside, your creditor can just file for a credit card lawsuit again. This time, you cannot claim the summons was not served properly.
Note that when it comes to enforcing judgment and settling the credit card lawsuit, your assets play an integral part of your creditor's pursuit of the debt. If they know that you don't have any form of assets and monthly income that are non-exempt, recovering the debt is very slim. However, if they know that you have several assets and income, you can expect your creditor to apply all collection efforts in the book.
For less complications, you can always try to negotiate a settlement with your credit card company. Many creditors are willing to forgive as much as 50% of the credit debt so sitting down and working on a deal should be considered.
There are times when even if the creditor is aware that the debtor have cannot repay the debt or when the judgment is nearing its expiration, they will refuse to accept the deal because of a grudge against the debtor. If such is the case, it would be best to consult with a judgment broker who can choose the enforcer to buy the judgment from the creditor. This is so you can save money while also fulfilling the judgment. This might be a long shot and usually this will only work if your card company is not a big company or is just a single person.
A broker can help you in various cases. One example is when you try to contact the creditor politely and the card company's own emotions prevented them from settling the case. An enforcer of the judgement may offer to purchase the judgement cheaply. In some cases, the same card company that refuses to settle with you might say yes to the one willing to buy the judgement. If the broker settled a deal, they could purchase the judgment and may satisfy your judgment at a lower rate. If the broker earns a profit, you could be saving a lot of money.
On the other hand, collection agencies and big credit card companies and banks tend to refuse third parties trying to buy their judgment so if you want to reach a settlement; you need to reach out to them directly or through their collection attorney or agency.
It's important to get a stamp of satisfaction from the court who ruled the judgment when you repay it. This court-stamped satisfaction of a judgment is a process that will require the documents to be calculated, filled out, and finally, notarized and stamped by the court where the credit card lawsuit judgment was ruled.
After you satisfied the judgment, you can file for a certified copy of the document along with a county recorder or send a copy of the judgment satisfaction to a credit reporting agency or to anyone that needs proof that you paid the amount due.
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