California Debt Relief

California Credit Card Debt law provides for a four-year Statute of Limitations (SOL) in which creditors may file suit for unpaid open-ended accounts. The SOL begins running from the date of the initial missed payment. California is one of a few states that do not reset the SOL when partial payments are made. The state law requires Defendants file a written response to the summons within 30 calendar days after service. Your answer should be sent via certified mail.

Judgment Enforcement

In California, the creditor has ten years from the entry of judgment to collect the debt. After five years, it may be renewed by the creditor another ten years and from then on, indefinitely. California provides for other methods of collection that are not commonly seen in other states. For example, the creditor can lien a pending lawsuit or inheritance to collect the debt. As much as these laws support the creditor in collection efforts, California law also protects family with children by allowing for exemptions.

California allows for a 25% exemption from wage garnishment, but the court may exempt all of the wages from garnishment in situations where a family with children depends on the income. The same holds true for personal property. Homestead exemptions are also allowed and at higher amounts for those over age 65.

Debt Settlement

Many people with Credit Card Debt problems prefer to undergo Debt Settlement, rather than face a courtroom and judgment interest. Even after a summons has been filed, it’s not too late to discuss it with the creditor. Debt Settlement allows for payment with of the debt interest free, while helping to avoid bankruptcy.