Can credit card companies take you to court for non payment?

If you think ignoring a creditor’s calls about an unpaid credit card debt will make the calls stop, you may eventually be right. If a debt goes unpaid and you’ve made no plans to repay it, your credit card company may sue you in civil court for the balance, hoping a judge will order you to pay.

Can creditors sue for credit card debt?

Unlike the creditor of a secured debt, like a mortgage, who requires collateral for the debt that it can sell it to satisfy the debt, the creditor of an unsecured debt, like a credit card, can only file a lawsuit against you personally as recourse to recover an unpaid debt.

Can a credit card company sue the wrong person?

Credit card companies often sell unpaid debts to a debt collector, and that party eventually files the lawsuit. Debt collectors sometimes sue the wrong person. If you have a name that’s the same or similar to someone who actually owes the debt, you can raise the defense of mistaken identity.

What happens if you ignore a credit card debt summons?

If you ignore your summons, the court is likely to rule in the debt collector’s favor and your wages could be garnished until you pay back the amount of money that the court rules you owe. If you are sued for credit card debt, your first step is to verify that the debt is actually yours.

What happens if you don’t pay a credit card debt?

Being in serious credit card debt can be scary. While it can be easy to throw away bills and ignore calls from debt collectors, there are consequences for not paying what you owe. When a company has exhausted its resources trying to get you to pay a debt, it will either try to sue you for the debt or sell the debt to another company.

Why do I need a lawyer for my credit card company?

For example, some defenses that could require the assistance of an attorney include: The statute of limitations has passed. Under state law, a creditor or debt collector gets a limited amount of time to sue you for an unpaid debt.