Can a law firm sue me for credit card debt?

by Vicky
(Baytown Tx USA)

A judgment was filed againist me in Harris county Texas case #1000323 on 09/09/2011, wha t can they do to me and what can i do to fix this? Can they attach my personal checking account? I am part owner in a business can they (collectors) touch any part of my business?? All cards were personal and attached to another business that is no longer in business. I tried to pay but couldn't continue. Thank you!

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Oct 30, 2011
Can a law firm sue me for credit card debt?

Many creditors hire law firms to sue consumers when the creditors' efforts to collect an unpaid debt have failed. Therefore, if a law firm won a judgment against you, it can collect on the judgment by asking the court for permission to take the funds in your personal bank account and/or put liens on your non-exempt assets -- assets that are not protected in Texas. Whether or not it can go after any of the money and other assets associated with your business depends on how the business is structured -- partnership, corporation, LLC, etc. To find out if your business assets are safe, talk with an attorney who works with businesses or with a consumer law attorney who helps consumers resolve their debt collection problems.

The only way you can "fix" the judgment is to pay it. It's possible that the law firm after consulting with its creditor client will be willing to let you pay the judgment amount over time or even settle it -- resolve what you owe for less than the full amount of the judgment. Note: If you are able to reach a settlement agreement, you will probably have to pay the full amount of the settlement in one lump sum almost immediately.

If you want to explore either of these options, you will have to contact the law firm. Before you do, spend time analyzing your budget to determine how much you can realistically afford to pay each month on the judgment and/or how much you can afford to pay to settle the debt. Bear in mind however that the creditor that hired the law firm to sue you may not be inclined to "cut you a deal" now that it has spent time and money getting the judgment against you. You would probably have been in a stronger bargaining position if you had tried to work out a way to pay your debt before you were sued.

Finally, you should know that the judgment will show up in your credit files for the next seven years. Also, at the end of this time, the judgment can be renewed for another seven years and can continue to be renewed every seven years as long as it remains unpaid. Therefore, unless you figure out a way to resolve the judgment, it could haunt you indefinitely.

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