What can I do if Chase sues me in District Court for Breach of Contract?
When facing delinquent credit card debt, creditors like Chase routinely file breach-of-contract lawsuits in local courts, including District Court. These collection matters are often handled by outside collection law firms. While this post provides general information, it is not legal advice. If you are facing a lawsuit, consult a qualified attorney.
The Lawsuit Process: From Complaint to Garnishment
Summons and Complaint: The creditor files a suit alleging a breach of contract and attaches documentation such as card agreements, account statements, and an affidavit of the balance, court costs, and attorney’s fees. A conformed copy of the cover sheet will show the date the case was filed (usually this is stamped in the upper righthand corner). It will show a checklist of case types. A creditor will sue under “Breach of Contract.”
Responding to the Lawsuit: Failing to answer the lawsuit allows the court to enter a default judgment in favor of the creditor. Filing a formal response prompts the court clerk to schedule a bench trial—a proceeding before a judge, without a jury, where evidence and defenses can be presented.
Continuances: Judges or parties may request or grant a continuance to allow time to consult counsel or prepare the case.
Writ of Garnishment: If a creditor obtains a judgment, they can seek a writ of garnishment to seize non-exempt wages directly from an employer or locate employment records via state subpoenas.
The proceedings
I’ve been in court plenty of times. Some dockets in places like Kittitas County Superior Court are set for Friday mornings, where the judge will hear a variety of case types. I’ve watched creditor suits come before the court and end with default judgements in minutes. There are plenty of these and the defendants generally do not show up.
Les Schwab is a creditor that sometimes sued in Superior Court. But most creditors will bring claims at the district court level.
Once default judgment is in place, a creditor like Chase has a lien on your earnings, and this allows them to garnish your wages. This is when your employer learns of the lawsuit and is instructed to withhold a portion of your earnings. For people already struggling to make ends meet, this is often a ruinous point in the drama.
So what can you do at this point?
The number one thing is to not ignore the lawsuit. At a minimum, filing an answer to the complaint triggers a bench trial, and this can delay a garnishment while also allowing some time to review the complaint and determine if the creditor is violating the law.
You can also consider whether bankruptcy is the right solution. Bankruptcy comes with a lot of protections. One of those protection is the automatic stay, which I have written about plenty of times. The AS stays lawsuits while the bankruptcy case winds its way to (hopefully) a discharge. Creditors often dismiss their lawsuits after a bankruptcy case is filed.
To be clear, doing nothing is a poor choice.
This post is for informational purposes only and does not constitute legal advice. Contacting Spalding Law Firm PLLC does not create an attorney-client relationship. Information pertains to Washington State law and the Federal District Courts for the Eastern and Western Districts of Washington. Spalding Law Firm PLLC is a debt relief agency helping people file for relief under the Bankruptcy Code.
