When a New York resident is sued for negligence, premises liability or other forms of civil liability he may do everything in his power to defend himself. Defending a lawsuit can often involve engaging the services of a lawyer and enduring lengthy legal processes that demand the defending party's time, attention and money.
It easier for the individuals who bring lawsuits if their defendants choose to ignore the charges brought against them. In some cases, after a certain period of time, if a defendant does not respond to a plaintiff's charges, a court will simply give the plaintiff a judgment for his or her damages. These judgments can be binding against the defendants and are difficult to overturn.
Credit card companies sometimes file lawsuits against individuals indebted to them in the hopes the debtors will ignore the companies' claims. When a debtor allows a judgment to be made against him, he can experience significant financial ramifications in the form of liens on his property and garnishment of his wages. Such consequences can plague a person for many years after the judgment is filed with the court.
While this practice is not new, some debtors are unaware that companies go to these lengths to recover credit card debt. By simply failing to take note of documents sent to them by their lenders, people can become subject to the harsh outcomes of the civil court system. On the other hand, individuals can always choose to defend themselves against the claims that their credit card companies make.
Defending a lawsuit can involve incurring expenses for legal assistance and court costs. However, carrying credit card debt can also be an expensive undertaking when late fees and interest costs rise. It can be hard to overcome crippling credit card debt, but with help, many individuals are able to get back to successful financial health.
Source: Forbes, "This Week In Credit Card News: Debt Collectors Garnish Wages, Cards Coming With Microchip," Bill Hardekopf, June 6, 2014