A credit card debt judgment is a court ruling involving debt. In other words, if a creditor gets a judgment against a credit card user who has unpaid debt, the debtor is legally obligated to pay the debt in the amount indicated by the judgment.
A credit card debt judgment can work one of two ways:
Most credit card agreements come with what's called an "arbitration clause," a legal nugget that prohibits consumers from suing credit card companies over any disputes. Instead, disputes must go to arbitration, which works like this:
So what can a person facing a credit card debt judgment do? If the facts of the case indicate that the person is legally responsible for paying the debt, many individuals turn to the bankruptcy court for protection.
Not only is bankruptcy designed to wipe out unsecured debts such as credit cards, filing bankruptcy comes with a protection called the automatic stay that immediately halts all collection efforts by creditors, including lawsuits and judgment orders.
If you're interested in learning more about your legal options for dealing with debt judgments and/or seeking bankruptcy protection , don’t hesitate to connect with a bankruptcy lawyer for a free consultation. Simply fill out the quick case review form on this page to get started now.
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