Connecticut Debt Relief
Credit Card Debt law in Connecticut provides six-years for a creditor to file a lawsuit for unpaid open-ended credit accounts. The Statute of Limitations (SOL) begins from the date of the initial missed payment. Partial payments restart the statute from the date of the partial payment. A Connecticut summons provides for 30 days to file an answer. Such important court papers should always be sent by certified mail.
Connecticut uses the term “consumer judgment” when referring to judgments made against debtors for Credit Card Debt. The creditor is allowed 20 years to collect the debt. If no action is taken to extend the limitation for 25 years from the judgment entry date, the creditor forfeits the right to collect. Judgments accrue interest at a rate of 10% per year. “Confessions of Judgment,” contract language that may bind consumers to the debt without legal defense, are barred in Connecticut.
Consumer judgments in Connecticut sometimes require that the creditor or debtor apply for an “installment payment order” before the creditor can garnish wages. If the debtor defaults on the payment order, then the creditor may file for garnishment of wages.
Connecticut allows consumers to exempt 25% of wages from garnishment. The court may modify this number in special situations. Homestead exemptions can be made up to $75,000 and many types of personal property can be claimed for exemption as well.
Once a summons is filed against a debtor, Debt Settlement and bankruptcy are the only two options to avoid judgment collection plus interest. Because Debt Settlement is removed from a credit report sooner than bankruptcy and because it allows repayment without interest, it is the preferred method for handling consumer judgments.