Representation

Being represented in court by a lawyer typically results in a better outcome, so first try to obtain legal assistance.
Your local County Bar Association can refer you to an attorney who handles your type of matter.
If you cannot afford an attorney, contact your local Legal Services organization to see if you are eligible for free advice or representation. 
If you live in Middlesex, Mercer, or Union County: Call CJLS for help – CONTACT US

Avoiding Repercussions

Ignoring a Credit Card Debt Lawsuit Can Lead to Serious Financial Repercussions.
Once you are served with a “Complaint,” you have 35 days to file an “Answer.”
If you don’t file an Answer you will be in “Default”
After the case goes into “Default” the creditor will obtain an award of money called a “Default Judgment.”
Judgments are valid for 20 years.

A Judgment allows the creditor to do the following:
Garnish your wages
Levy your bank account
Put a lien against your home and other property

Filing an “Answer”

You can avoid a Default Judgment by filing an “Answer” to the lawsuit.

Filing an Answer can be relatively simple and self-help forms are available at: https://www.njcourts.gov/selfhelp/selfhelp.html#def-civil

You can file the Answer and other documents online through the Judiciary Electronic Document Submission (JEDS): https://www.njcourts.gov/selfhelp/jeds.html

Common Defenses to Raise in a Credit Card Case:

1. Unauthorized Charges
   you are not liable for unauthorized charges – for example identify theft, data breaches, lost or stolen card

2. Disputed Charges
   you did not receive an item you purchased or the goods were defective and you disputed the charges

3. Statute of Limitations
   depending on the type of debt, the creditor will generally have 4 to 6 years to sue you after you fail to pay

4. Bankruptcy
   if you filed for bankruptcy the debt may have been discharged

5. Debt Buyer Defenses
   if you are being sued by a debt buyer and not the original creditor, the debt buyer must (a) have a consumer lending license, and (b) show the complete chain of title of the purchased debt.

Know Your Options

You Can Always Resolve the Debt by negotiating a settlement, but first, ask yourself … is it in my interest to pay this particular credit card debt?

If you have other debts, you may want to either pay the other debts first, or file for bankruptcy.
For example, student loans, tax debt and child support are generally, not eliminated by bankruptcy so you may want to tackle those obligations first.
You also may want to prioritize your rent, mortgage or utility bills if you are having trouble paying basic living expenses.

If you have a lot of debt and you have income or assets you want to protect, you should consider filing for bankruptcy. Bankruptcy will eliminate or “discharge” most kinds of debt, including credit card and medical debt.

Negotiating with Debt Collectors

Even if you owe the full amount and don’t have a defense, you can still negotiate with debt collectors.

If you are able to pay a good portion of the debt, try offering lower lump sum as a final settlement.
Many debt collectors prefer a lump sum that is less than the full amount as a final settlement, rather than waiting for the full over time.    
If you can’t afford a lump sum, you should still try offering less than the full amount over a short period of time – perhaps a period of 2 to 4 months.
Even if the debt collector will not take less than the full amount, you can almost always negotiate a payment plan based on what you can afford – even a payment plan over a period of years.

You Settled Your Case … What Next?

1. Get the settlement agreement in writing before making any payments
2. Keep a record of your payments
3. Consider paying by money order so they do not obtain your bank account information
4. When the debt is paid, make sure the debt collector sends you a letter confirming that the debt has been paid
5. Insist that the debt collector provide you with “Stipulation of Dismissal with Prejudice” to file with the court
6. If a judgment was entered against you ask for a “Warrant to Satisfy Judgment” once it is paid off