Legal Question in Credit and Debt Law in California

Sued by Credit Card Company

My husband was recently served with a law suit for credit card debt, the attorney who filed the suit contcated us and said they would settle for 25 % of teh balance plus monthly payments (i feel this is better that trying our luck in court) but they mentioned that this will still sow up as a stipulated judgement on his credit report ... So what is the difference if i just go to court and they impose judgement?

Asked on 12/02/08, 7:36 pm

4 Answers from Attorneys

Phillip Lemmons, Esq. Phillip Lemmons APC, Attorneys at Law

Re: Sued by Credit Card Company

Your husband should retain counsel to assit him with this matter.

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Answered on 12/06/08, 6:57 pm
Larry Rothman Larry Rothman & Associates

Re: Sued by Credit Card Company

The reason for the settlement offer maybe because that the lawsuit is defensible based upon the statute of limitations.

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Answered on 12/03/08, 11:24 am
David Gibbs The Gibbs Law Firm, APC

Re: Sued by Credit Card Company

I agree with Attorneys Rothman and Stone - before you settle, you owe it to yourself to speak to an attorney - even if it costs you a few hundred dollars - as the lawsuit may be defensible. The flip side, however, is that settling may (if there is no defense to the lawsuit) be better for you as it will reduce the attorneys fees the creditor accrues, and gives you the option of paying less-than the whole amount immediately. If this goes to a court judgment, then the entire amount is due immediately, plus the creditor can seek to recover their attorneys fees, prejudgment interest, and all their costs of suit. Additionally, once it goes to judgment, the entire amount is immediately due, and they can garnish wages, levy bank accounts and other assets to satisfy the judgment. You will find that with a judgment in hand, the creditor is going to be less-likely to accept a payment plan to repay the debt. By setting an amount now, and a payment plan, you may be getting a better deal than you would after a judgment. But, don't do anything until an attorney reviews the matter and helps you decide if you can defend the lawsuit. Statute of limitations is just one response to defend a lawsuit of this type.

*Due to the limitations of the LawGuru Forums, The Gibbs Law Firm, APC's (the "Firm") participation in responding to questions posted herein does not constitute legal advice, nor legal representation of the person or entity posting a question. No Attorney/Client relationship is or shall be construed to be created hereby. The information provided is general and requires that the poster obtain specific legal advice from an attorney. The poster shall not rely upon the information provided herein as legal advice nor as the basis for making any decisions of legal consequence.

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Answered on 12/03/08, 1:48 pm
Michael Stone Law Offices of Michael B. Stone Toll Free 1-855-USE-MIKE

Re: Sued by Credit Card Company

Why would you do what someone else's attorney tells you, without getting a reality check from an independent attorney? How old is this debt, anyway?

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Answered on 12/02/08, 9:15 pm

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