Expert: Jason Shear, Esq. - 11/6/2008

Question
I'm being sued by a credit card I had when I was 18-19. I am now 23 going on 24 in a few months. I just heard from them few months ago set up a payment arrangement for 50 dollars a month. I stopped paying due to not having a job I don't have a stable place to live I stay with friends, and I own nothing besides some clothing. They are now have someone trying to contact me to give me papers once again. What do I do. What do I expect if I accept the papers? Again I own nothing and stay with different friends, and am not working.

Answer
Jon:

Sorry to hear about your employment situation.  If you do not accept the papers, and by this your referring to the summons and complaint, the process server after a reasonable number of attempts to serve you personally can use alternate means of service.  Therefore, there is not much to be gained from dodging the process server.  

It appears from what you write that the last payment was at least four years ago.  In many states this debt could be past the Statute of Limitations.  What you need to do is file an "Answer" denying their claims and pleading all affirmative defenses.  Many others may tell you that since you are not working and do not have any assets you should not worry since there is nothing for them to take.  However, you are young and your financial situation could change in the future.  If you don't answer the lawsuit they would get what is called a default judgment.  A judgment in most states is good for well over a decade.  Therefore, if down the road you get a good job or even inherit money, those funds could be taken to satisfy the judgment.  Your only other option at that point would be bankruptcy.

You should answer the lawsuit and make them prove their claim.  As the debt appears to be old enough where the collection attorney may have trouble producing sufficient documentation to prove their claim in Court.  If you need help to walk you through what to do please do not hesitate to call.  As I put in previous posts, to type out every step a consumer should do to defend themselves in a consumer credit transaction, I would have to type out the equivalent of a small book.

Hope this answers your question.  If you have any other questions please do not hesitate to call.

Jason Shear, Esq.
NY Consumer Attorney
(716) 566-8988