Expert: Barnette Law Offices, LLC - 12/4/2008

Question
Hi,
My husband has a large amount of credit card debt and stopped making payments about a year ago. Since then, he has settled some of the debt as well as made payment arrangements. He has two cards left and has been trying to avoid bankruptcy. The creditor to whom he owes the largest portion of debt with is Citibank. It was handed over to a legal firm that does collections. He has talked with these people and the lowest settlement they would agree to is 50% of the $25,000 he owes them. We only have $8000 we can use to settle the debt. Today, a sheriff showed up with a notice that he is being sued and that he has until 12/18 to respond. What will happen when he shows up in court? Does this mean a judgement has been filed against him? If not, what are the circumstances under which a judgement will be filed? Is there any chance of still settling with them? Can they garnish his wages? We own our house but have little to no equity in it. It is in his name only. Any information you can provide would be appreciated.
Thank you,
Christy

Answer
Christy:

   Yes, it means that Citibank has sued him.  He must file an Answer and make an appearance or a default judgment may be awarded against him.  A judgment has yet to be ordered but, will be if this is ignored.  You can still attempt to settle the account but, chances of getting it to $8,000.00 are slim to none.

  Whether they can garnish his wages and attach a lien to your property depends on what state you live in.  If you live in Tennessee, then feel free to give us a call at Barnette Law Offices, LLC.

  Jason Barnette
  Barnette Law Offices, LLC
  http://www.barnettelawoffices.com
  615-585-3885