District of Columbia Debt Relief

The District of Columbia Credit Card Debt law applies to the area around our nation’s capital. Although the area encompasses parts of Virginia and Maryland, its own laws apply. The District carries one of the shortest Statutes of Limitations (SOL), just three years, for creditors to file suit against debtors for unpaid open-ended accounts. The SOL starts on the date of the initial missed payment. Like most states, the time limit resets to start on the date of any subsequent partial payments. The District provides a Defendant with 20 days to file an answer to a summons once served. All legal documents should be sent via certified mail.

Judgment Enforcement

The SOL on collection of judgments in the District is three ten years, one of the shortest in the country. However, liens places on real property remain in effect for 12 years, without provision for reviving the judgment. Interest is charged at 70% of the rate set by the Treasury for underpayment or overpayment of tax to IRS, rounded to the nearest full percentage, unless otherwise specified by contract.

Creditors have the right to seize non-exempt personal property and wages too. They are limited to garnishing 75% of the debtor’s weekly income. There is no homestead law in DC, but essential forms of person property like clothing are allowed small exemptions.

Debt Settlement

Debtors facing a lawsuit for Credit Card Debt should seriously consider Debt Settlement as an option. By working out an interest free payment plan, consumers may be able to avoid court altogether and escape bankruptcy.