Debt Defense
Frequently Asked Questions
Do I need to appear for my trial or hearing?
We always recommend that a client attend a trial or hearing. In order to present evidence in support of your case, we will likely need you present.
However, for certain types of hearings, or in certain situations your presence may not be necessary. It is important you check with our office a day or two prior to your hearing to confirm whether or not you will need to attend.
What can happen if a judgment is entered against me?
Each state has different methods a creditor can use to execute on a judgment, including garnishments/wage executions, bank levies, etc.
It is important to contact us if you receive judgment paperwork so we can immediately take action to resolve this matter for you to avoid the creditor executing on the judgment.
I’m in a debt resolution program – I thought I couldn’t be sued – what happened?
Unfortunately, it can happen. Creditors work with debt resolution companies, and it really is in their best interest to try to reach a resolution with the consumer, but sometimes consumers in these programs do get sued. Our goal is to work with your debt resolution company, as well as you, to get the matter resolved and avoid a judgment being entered.
I received a notice for mediation – what is mediation?
Mediation is an opportunity for you to settle your case. A neutral third party appointed by the court (or in some situations a private mediator selected by the parties) will listen to both sides and help us work towards a resolution. This helps avoid a trial in the matter and avoid a judgment. If both parties reach a settlement, you will sign a document memorializing the terms of that agreement.
What happens if I miss a payment or two under the terms of a settlement agreement?
You want to avoid breaching a settlement agreement. Many of them include provisions that result in an automatic judgment against you for the full balance if you breach the agreement, less any payments made to date. Some may require notice and an opportunity to cure (meaning you can catch up on your payments), but not all of them do include this type of provision.
If you are having issues making your payments, contact our office so we can see if there is any alternative arrangement that can be worked out with the creditor to avoid a breach of the agreement.
You currently represent me for another matter, can I just send you my court paperwork for another case?
We are happy to assist you with resolving another matter. If you are working with a debt resolution company or legal plan, please contact them and confirm the matter can be assigned to our office before sending us paperwork.
Who can I contact if I need an update on my case?
We encourage clients to utilize their portal for communications. You can access documents in your file, and important information as it is added to your file.
Alessandro is available to provide updates and can be reached at the email address below. Please allow him 48 hours to provide a response. If you have difficulty reaching him, you can also contact our team manager, Lisa at the email address below.
My situation has gotten worse, and I think I need to file bankruptcy – who can I contact?
Please reach out to our bankruptcy team at bankruptcy@ginsburglawgroup.com and they an assist you further.
I am getting frequent, harassing calls and letters from debt collectors about the debts, I thought that would stop. How can I handle these calls?
We understand these communications can be frustrating and you have no legal obligation to speak with your creditors, or debt collectors. There are a number of calling blocking apps you can try using, or your phone provider may even offer one that is on your device.
If you feel the communications have become excessive and are harassing in nature, threats have been made against you, there have been misrepresentations made to you, or any other unfair collection actions have been taken (see our FDCPA page for more information) please contact us. You may have a Fair Debt Collection Practices Act case.
My case settled, how do I know where to make payments?
The settlement agreement you received should indicate the way you can pay. You can usually pay by mail, online or by phone. If you need us to contact the creditor’s attorney to authorize phone payments, just let us know.
Who is the attorney appearing in court with me?
Attorney Ginsburg attends many hearings locally or by zoom/phone, but often uses appearance attorneys for hearings that take place further from her home office location in Pennsylvania. If you contact us the morning of your hearing we can get this information from the appearance company for you.
Please note that we work with many of the same appearance attorneys and have experience working with them, and are comfortable with their ability to work with you and handle your matter. If you have any concerns during your hearing, please contact us.
Will I have any tax liability for my settling my debt for less?
First, we are not tax attorneys. You should not take this as tax advice, and we recommend you speak with your tax professional.
Generally speaking though, any settlement that provides for more than $600 in tax relief could be taxable and you could receive a 1099-C from the creditor. Read more at this link HERE.
What should I do if my credit report doesn’t reflect my settlement?
If the status of your account is not properly updated to reflect the settlement, you can dispute the inaccurate information on your credit report. All three credit bureaus accept disputes online, via phone, and by mail. Our FCRA page provides more information on how to dispute information on your report. You will want to provide documentation to back up your claim (i.e. your settlement letter with the creditor or the release/settlement agreement, proof of your payment pursuant to that agreement).
What is the statute of limitations in my state for credit card debt?
Please refer to the chart below:
State | Oral contracts | Written contracts | Promissory notes | Open-ended debts |
Alabama | 6 | 6 | 6 | 3 |
Alaska | 6 | 6 | 3 | 3 |
Arizona | 3 | 6 | 6 | 3 |
Arkansas | 5 | 5 | 5 | 3 |
California | 2 | 4 | 4 | 4 |
Colorado | 6 | 6 | 6 | 3 |
Connecticut | 3 | 6 | 6 | 3 |
Delaware | 3 | 3 | 3 | 4 |
D.C. | 3 | 3 | 3 | 3 |
Florida | 4 | 5 | 5 | 4 |
Georgia | 4 | 6 | 6 | 6 |
Hawaii | 6 | 6 | 6 | 6 |
Idaho | 4 | 5 | 5 | 4 |
Illinois | 5 | 10 | 10 | 5 |
Indiana | 6 | 10 | 10 | 6 |
Iowa | 5 | 10 | 5 | 5 |
Kansas | 3 | 6 | 5 | 3 |
Kentucky | 5 | 15 | 15 | 5 |
Louisiana | 10 | 10 | 10 | 3 |
Maine | 6 | 6 | 6 | 6 |
Maryland | 3 | 3** | 6** | 3 |
Massachusetts | 6 | 6 | 6 | 6 |
Michigan | 6 | 6 | 6 | 6 |
Minnesota | 6 | 6 | 6 | 6 |
Missouri | 5 | 10 | 10 | 5 |
Montana | 3 | 8 | 8 | 5 |
Nebraska | 4 | 5 | 5 | 4 |
Nevada | 4 | 6 | 3 | 4 |
New Hampshire | 3 | 3 | 6 | 3 |
New Jersey | 6 | 6 | 6 | 3 |
New Mexico | 4 | 6 | 6 | 4 |
New York | 3 | 3 | 3 | 3 |
North Carolina | 3 | 3* | 5 | 3 |
North Dakota | 6 | 6 | 6 | 6 |
Ohio | 6 | 15 | 15 | 6 |
Oklahoma | 3 | 5 | 5 | 3 |
Oregon | 6 | 6 | 6 | 6 |
Pennsylvania | 4 | 4 | 4 | 4 |
Rhode Island | 10 | 5 | 6 | 4 |
South Carolina | 3 | 3 | 3 | 3 |
South Dakota | 6 | 6 | 6 | 6 |
Tennessee | 6 | 6 | 6 | 3 |
Texas | 4 | 4 | 4 | 4 |
Utah | 4 | 6 | 6 | 4 |
Vermont | 6 | 6 | 5 | 3 |
Virginia | 3 | 5 | 6 | 3 |
Washington | 3 | 6 | 6 | 3 |
West Virginia | 5 | 10 | 6 | 5 |
Wisconsin | 6 | 6 | 10 | 6 |
Wyoming | 8 | 10 | 10 | 8 |
*10 years if the contract is under seal
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**12 years if contract or promissory note is under seal
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Is my spouse’s debt my debt?
In typical lawyer fashion, the response is – it depends. If you live in a community property state like Arizona, California, Idaho, Louisiana, Nevada, Texas, Washington, New Mexico, or Wisconsin, and the debt was obtained during marriage – then YES. All assets and debts acquired during marriage are jointly owned. There are exceptions, such as things detrimental to the community – such as gambling debts – but gambling winnings are joint property! In Alaska, South Dakota and Tennessee, the couple can choose whether to make assets and debts part of the community property. The remaining 38 states operate under common law property systems, which means property and debts of one spouse are not property and debts of the other spouse unless jointly acquired, and debts are only those of the spouse whose name they are in – so your spouse’s credit card debt is not your responsibility.