Help - Retired, being sued for credit debt

[dw10274]

NJ

My friends parents have credit card debt that has defaulted and in collections. Both accounts are not joined but separate. They have received notices from the attorneys of the credit. The latest letter stated if they did not contest to the lawsuit claim by filing a dispute that they will be liable to pay $175 for filing fee to dispute to the superior court.

Both are retired and literally live check to check monthly, no savings and are afraid. They tried to use a non profit debt consolidation however the counselor said they don't make enough to qualify. They consulted a bankruptcy lawyer however the attorney said they had no assets to protect and that since they also have no monies and are living check to check that there it wasn't necessary since there is no garnishment liability. Should they panic about the lawsuit? Are they required to go to court? There is no subpoena for them to require to be in court.

 

[quincy]

NJ

My friends parents have credit card debt that has defaulted and in collections. Both accounts are not joined but separate. They have received notices from the attorneys of the credit. The latest letter stated if they did not contest to the lawsuit claim by filing a dispute that they will be liable to pay $175 for filing fee to dispute to the superior court.

Both are retired and literally live check to check monthly, no savings and are afraid. They tried to use a non profit debt consolidation however the counselor said they don't make enough to qualify. They consulted a bankruptcy lawyer however the attorney said they had no assets to protect and that since they also have no monies and are living check to check that there it wasn't necessary since there is no garnishment liability. Should they panic about the lawsuit? Are they required to go to court? There is no subpoena for them to require to be in court.

They are not required to do anything unless/until they are served with a summons and complaint (are sued). At that time, they will want to respond to the complaint (file an answer) and appear in court. If they don't appear in court, a default judgment can be entered against them.

They can contact a state agency that provides free or low cost legal assistance to senior citizens, for help with any lawsuit. They can also seek advice from the same agency now, before they are sued.

What they should NOT do is pay what is demanded without a personal review by a legal professional.

 

[adjusterjack]

They tried to use a non profit debt consolidation however the counselor said they don't make enough to qualify.

Right. If they have no money to pay the debt, there's nothing to consolidate.

They consulted a bankruptcy lawyer however the attorney said they had no assets to protect and that since they also have no monies and are living check to check that there it wasn't necessary since there is no garnishment liability.

That's true to some extent. Bank accounts can be levied but there is some protection for Social Security money.

There is no subpoena for them to require to be in court.

Seem like they are only being threatened with a lawsuit. They have the option of ignoring the threats until they are served with a summons and complaint.

 

[LdiJ]

NJ

My friends parents have credit card debt that has defaulted and in collections. Both accounts are not joined but separate. They have received notices from the attorneys of the credit. The latest letter stated if they did not contest to the lawsuit claim by filing a dispute that they will be liable to pay $175 for filing fee to dispute to the superior court.

Both are retired and literally live check to check monthly, no savings and are afraid. They tried to use a non profit debt consolidation however the counselor said they don't make enough to qualify. They consulted a bankruptcy lawyer however the attorney said they had no assets to protect and that since they also have no monies and are living check to check that there it wasn't necessary since there is no garnishment liability. Should they panic about the lawsuit? Are they required to go to court? There is no subpoena for them to require to be in court.

If their only source of income is Social Security Retirement benefits then they would be considered to be uncollectable, and therefore should not throw good money after bad trying to defend against a judgment.

 

[quincy]

Here is a link to New Jersey senior services, where the couple can locate local free/low-cost legal assistance:
https://libguides.njstatelib.org/get_help/seniors