Dont Be Terrified Of A Credit Card Lawsuit

How many people are terrified of being in a credit card lawsuit? This is plain Silliness once you understand a few concepts. First, your credit card company for example is charging far more than the state's legal limit on your interest rate. You can thank a district court appellate judge for his opinion in 1978 that opened the doors to this situation we face today. Do you realize that if your 29% interest rate credit card sues you and wins, it would take then about eight months to complete the process and by the time they obtained a judgment lien, if they did, the interest rate would be reduced to the state's legal limit, usually about 9%.

What's more, the judgment lien creditor can only garnish a small part of your paycheck, no more than 25% of your take home pay and even less if your state has a law saying so. But what is even more incredible is that if you compare the amount of money you were voluntarily paying each month on this unfriendly, unfair 29% interest rate account, it would be about three times what you would pay from a wage garnishment two years later.

And the biggest punch line is that wage garnishment would legally block every creditor you have from taking your paycheck through a wage garnishment as well. And while they can levy on your bank account and lien the equity in your home (if you still have any), it only takes a couple of hours to put a stop to this from ever occurring, so it's not even worth chatting about.

So why shop for another voluntary intentional payment plan such as bankruptcy or debt settlement when you can just let them try and take your wages? However, not every creditor/collector will even try to sue you. The state already has a payment plan and by defaulting to that plan, you risk far less money than trying to willingly work with your creditors and you are then sheltered from all creditors with the exception of one creditor at a time.

This is exhilarating enough but when we put in plain words this to clients, some of them ask, "So if I don't need any payment plan and you now gave me this information for free, why do I need to pay someone for help?The answer is you really don't, but the service we provide is walking you through the exact steps to protect your property, banking, small business, cash flow and wages so that you don't have to reinvent the wheel and risk doing something or not doing something that would allow a creditor to take money or property.

It's a bit like I tell my wife when she says I should fix something in the house or paint it for myself. I show clearly that while I probably could do that, it is better to have a professional who does it all the time. You wouldn't think how much of my "to-do list" I've gotten out of with this technique.


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