Sometimes you can successfully defend and win lawsuits for consumer debt (e.g. credit cards and loans), even when you owe the debt. 

How is this possible? The most common reason is that the company suing you does not possess the evidence required by the Court to win. When debt buyers purchase your account from the original creditor, they frequently do not receive the documents supporting it. Sometimes even the original creditor does not retain all the documents sufficient to withstand legal or evidentiary challenges to the debt.  Another basis for winning may be that the debt is too old, otherwise known as a statute of limitations affirmative defense.  There are a variety of  other legal defenses to lawsuits that may be appropriate for your case. 

Tami Schneider offers one short free consultation to review consumer debt lawsuit Complaints, which you received within the last 10 days.  Tami Schneider will provide you with her professional, honest and fair appraisal of your chances of winning. If you have just received a Summons and Complaint, call today to schedule a no-obligation appointment. (505) 930-2407.  

The most important thing you need to do to prevent the Plaintiff (i.e. company suing you) from winning, is file a timely Answer with the Court where the Complaint was filed.

Filing an Answer is free. The Court Clerk will not charge you to file an Answer.  

Counting from the date you received the Complaint and Summons, in New Mexico you have 20 days to file the Answer if the case is in Magistrate Court or 30 days to file the Answer if the case is in District Court. If you fail to file a timely Answer, the Plaintiff will automatically win by default. The Court will grant the Plaintiff a Default Judgement against you, even if the Plaintiff has no evidence.

What happens in New Mexico when a Judgment is entered against you?

The Plaintiff may file an Application for Writ of Garnishment.  You can assert exemptions for certain property (including but not limited to social security income, pensions and homestead equity of up to $60,000) protected by state and federal laws by your prompt filing of a timely pleading with the Court.  

Your paycheck is subject to garnishment depending on how much you earn. The Plaintiff will send a Writ of Garnishment to your employer.  25% of the disposable income from your paychecks may be garnished, or a smaller percentage if your income is low, or none at all if your income is less than federal minimum wage.  

Money in your bank accounts can be seized.

A Transcript of Judgment may be filed with the County Clerk, creating a judgment lien against your real estate.

When you owe a number of companies money, often the simplest, easiest and least expensive way to get rid of your debt is to file Chapter 7 Bankruptcy.

Chapter 7 Bankruptcy can eliminate credit card debt, signature loans and many others debts even after you lose a case in court. (However, in New Mexico a Motion to Release Judgment Lien must be filed with the Bankruptcy Court in order to avoid and cancel any judgment liens against your real estate.)