I cannot provide a definitie answer without reviewing the paperwork.
However, based on the information you provided, it appears that you were served with a complaint. At that point, you should have sought legal advice to determine if you had a legal defense against the claim. Not having money is not a legal defense.
So, based on the language you provided, it also appears that you have a judgment against you. So, at this time, they can seek to garnish your wages and place liens on your assets, which includes bank accounts. You may want to visit a bankruptcy attorney to determine if bankruptcy is a valid option. You should do so as soon as possible to avoid liens against your assets. At this point, CBA is merely an unsecured creditor.
I agree with Ms. McGill.
Based on the facts you presented, it appears you have a judgment against you based on contract law. The creditor has rights to collect the court issued judgment, including garnishing your wages, attaching to your bank accounts, and seizing other assets.
If you are unable to pay the judgment, or negotiate with the creditor to pay the outstanding balance, you should consider filing for bankruptcy protection. If you are eligible for bankruptcy protection, the judgment should be discharged (deemed uncollectable), provided the underlying debt is considered dischargeable by the U.S. Bankruptcy court. (Visit my website for additional resouces on what debts are not dischargeable.)
My response is based on the limited facts you posed on www.avvo.com. I hope this information was helpful.
Angel M. Van Wieren