Credit card agreements, like mortgages, car loans, and many other agreements, are contracts. Like all contracts, the credit card agreements come with obligations, in this case, the obligation to pay back borrowed money.

In tough economies, a lot of people are concerned about the consequences of not paying credit card debt, in lieu of other, more important, bills. Quite simply, if you can stand being contacted at an almost constant rate, the worst thing that can happen to you is a judgment.

Although this doesn’t sound too bad, you must consider that the problems with judgments is their dischargeability in bankruptcy. Once a judgment is taken against you, the creditor has changed it’s position from an unsecured creditor (in the case of a particular credit card companies), to a secured creditor. This change in position can have drastic effects on whether you have to pay back the debt.

Moreover, and regardless of your decision to file bankruptcy, a judgment entitles the creditor to garnish all of your property, income, or savings that the creditor can get. In Oklahoma there are maximum amount for the garnishment, but as a general rule, the creditor will want to receive the highest payment in the shortest amount of time.

By taking precautions (like not ignoring legal documents) prior to judgment, you can help preserve some of your rights, and not risk helping the creditor’s fight against you.

If you’re having problems paying your bills, or negotiating your debt, contact our office immediately! Don’t miss opportunities to help aleviate some of the problems, and get back on track.

You may call (405.748.0318) or email (contact@absolutelawfirm.com) to set up your free consultation.