I just received a court summons from American Express for unpaid credit card debt. It’s around $11,000, and I’ve been ignoring their collection calls, hoping the issue would just go away.
Now that I’ve been summoned, I’m unsure what to do next. Should I try contacting them to arrange a payment plan, or is it too late for that? Should I look into hiring a lawyer? I don’t have the money to pay this off all at once, but I don’t want to make the situation worse by ignoring the summons. Any advice would be greatly appreciated.
You should try reaching out to them and see if they’ll work out a payment plan with you. If not, it might be time to pick up some extra work to help cover it.
If you’ve already been served a court summons, the time for setting up a payment plan with them directly might have passed. You’ll need to go to court. If you don’t show up, they’ll likely get a default judgment against you, which could lead to wage garnishments or liens on any assets you have now or in the future.
Noel said: @Parker
Does going to court actually help, or is it just delaying the inevitable? Will they still garnish my wages even if I show up?
Going to court is better than ignoring it. If you don’t show up, they’ll garnish your wages without your input. By attending, you might be able to negotiate a payment plan with the court’s involvement instead.
@Parker
I get that. I wish I had set up a payment plan months ago instead of ignoring this. I just hope showing up to court doesn’t automatically mean wage garnishment and losing other things I own.
Noel said: @Parker
I get that. I wish I had set up a payment plan months ago instead of ignoring this. I just hope showing up to court doesn’t automatically mean wage garnishment and losing other things I own.
Going to court can only help. The judge might work with you to figure out a reasonable payment plan.
Definitely go to court. Bring proof of your financial situation, like pay stubs, bank statements, and a budget showing what you can realistically afford. If you’ve had any recent financial hardships, like medical bills or unexpected repairs, bring proof of that too. Be honest and take responsibility for the debt. Judges tend to be more understanding when you show effort.
American Express is tough to negotiate with. They might offer an 80% settlement, but they often want it paid in a lump sum or in a few payments. What state are you in, and how much do you make each month? That’ll help figure out how much they could garnish.
Call American Express or the collection agency to try setting up a payment plan. Know what you can realistically afford beforehand. If that doesn’t work out, going to court could still help. Prepare a budget, bring proof of your expenses, and have a recent pay stub handy. Courts want to see the facts, so be honest about your situation. Ignoring it won’t help, but taking action might.