Can you be sued for credit card debts?
When you have fallen behind on payments, the credit card company may or may not sue you depending upon the amount you owe. There are some credit card companies which may file a lawsuit only when you're late on payments for 60-90 days. However, in most cases, a credit card company may threaten to sue you if you've made no attempt to pay off bills. They may not actually sue you because it's quite expensive and time-consuming.
If there is a cosigner on your credit card account, the credit card company may call the cosigner and try to recover payments rather than file a lawsuit against you. Most often credit card companies transfer or sell off your debt to a collection agency that'll collect the payments from you. They may even agree to negotiate a settlement on your account.
Certain credit card companies are more prone to taking legal action when they feel that debtors are trying to escape their credit card payments. But if the Statute of Limitations on your debt account expires, you cannot be sued for credit card debts. The Statute of Limitations (SOL) varies from one state to another. Moreover, it is different for each type of debt account.
What happens if you are sued for credit card debts?
In case your debt account is well within the SOL, the credit card company can file a lawsuit. If they win, they'll get a judgment against you from the court. Through the judgment, the court orders you to pay off credit card bills. The judgment order gives your credit card company the right to garnish your wages in case you fail to repay your bills. However, there are some states such as Texas, which do not allow wage garnishment unless it is the only way out for a creditor to execute a judgment.
States which do not allow garnishment may seize your bank accounts (also joint accounts) and sell off non-exempt property or place a lien on your property. However, such states cannot initiate a forced sale of your primary residence. In community property states like Texas, if you are sued for credit card debts, your creditor can seize joint marital property or place a lien against it even though your spouse may not have her name on the debt account.
Being sued for credit card debts - How do you get out of it?
Here's what you need to do when you're sued over credit card debts.
Use SOL defense: If you're sued for unpaid credit card bills even after the SOL has expired, send an Expired SOL Notification Letter to the creditor stating that he cannot take a legal action against you because your account is well past the SOL. You will have to show proof of the SOL such as statements with the dates when your account has been in default and when you have been charged-off. Copies of your credit report showing the exact date of default will also serve as proof of the SOL.
Reply to court summons: If the SOL period hasn't expired and you're sued for credit card debts, then you would probably receive a court summons, which you need to reply within a certain time period. The duration for replying to a summons varies from state to state. For instance, in New York, the law gives you 20 days to answer the summons.
In order to answer the summons, you need to file a document (known as "Answer") with the court. In the "Answer", you can dispute the allegations brought about by your credit card company. You need to send a copy of the "Answer" to the attorney representing the creditor. The copy should be sent by Certified Mail with a Return Receipt Request.
When you reply to the summons, it prevents your creditor from getting a default judgment from the court. Moreover, replying to the summons gives you additional time to think about how to negotiate with your creditor and get out of debt faster.
Sued for credit card debts - how does it affect your credit?
When you're sued over credit card dues and receive a judgment order, it stays on your credit report for 7 years from the judgment filing date. This brings down your credit score by 50-100 points thereby making it difficult for you to qualify for credit (at least for the next 2-3 years) at favorable rates of interest. Moreover, if you do not pay the judgment amount, it can get even worse. Unpaid judgments are renewed for an indefinite period of time even if you do not have the funds to make payments. So, the best way to avoid such legal action is to negotiate an alternative payment plan or a debt settlement with your creditor.
When you're sued for credit card debts, you can request the court to arrange for a negotiation with your creditors. The judge may order the creditor to offer you an affordable payment plan so as to put the lawsuit on hold. This will give you the opportunity to pay as much as you can and creditors will not be able to continue with the lawsuit in court.
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#1
05-20-2006, 09:09 PM
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Join Date: May 2006
Posts: 1
Credits: 967
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Can you be sued for credit card debts?
I am being sued by citibank credit card. I live with my daughter and have no income, i have not been able to pay on this debt since oct2001, i am scared i have never had this happen to me. what is the worst thing will happen to me?
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#2
05-21-2006, 08:05 AM
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Junior Member
Join Date: May 2006
Location: Oklahoma
Posts: 87
Credits: 4,498
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Is is Citibank's inter collection agency that is threatening to sue you?? Citi bank is the worlds worst I think in using "scare" tactics to make people buckle to them and pay right away. Have you tried to make payment arrangements with CitiBank?
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#3
05-21-2006, 08:18 AM
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Junior Member
Join Date: May 2006
Posts: 31
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I too got sued by Citibank back in 2003--they cops served the papers to my mother during the day when I was at work. Boy, did I get alot of questions from her! I ended up filing backruptcy b/c I could afford the monthly payments even with consolidation of all my debts. I would get an attorney for advice, they shouldn't charge you for advice! If need be, hire him then, I know that may sound like alot of money, but my attorney cost me $700.00 to file bankruptcy, so your attorney just to make up a letter to Citibank or whatever shouldn't cost that much.
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#4
05-21-2006, 08:31 AM
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2001?? What state are you in ?? It could be out of the SOL for your state.. If it is out of SOL they might try to file suit, but you should be able to have it dismissed on ground the debt is time barred.
__________________
Experience is something you don't get until just after you need it.
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#5
05-21-2006, 11:02 AM
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 Moderator Join Date: Apr 2006
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If you have no income to repay the debt I would definitely see if you could file bankruptcy. My bankruptcy was actually done by a paralegal and cost about 400 dollars total. Bankruptcy filing laws have changed recently so I don't know if that would still be an option.
If you don't want to try that,let me ask you this--do you get some kind of state or county support each month or child support? I am pretty sure they can't attach those types of funds. Maybe they can arrange some type of affordable payments for you. Have you talked with them and explained your financial situation?
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#6
05-22-2006, 05:12 AM
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Good point Clay. millerdenyse, check your state laws for SOL. If the debt is past SOL, they cannot win it, provided you appear the trial and raise your voice with SOL issue. Consult a lawyer; don't let them win a default judgment.
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#7
05-22-2006, 08:49 AM
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Member
Join Date: Apr 2006
Posts: 146
Credits: 4,201
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Blah. I hate reading things like this. I hope every credit card company that pays money for a law suit ends up losing that money AND The money owed to them because the victims have to file bankruptcy. Some companies are so willing to work with you - but others aren't. Don't you'd think they would be so they can at least get something every now and then? Creditors... blah.
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#9
09-28-2006, 04:53 PM
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The SOL in WI is for six years from the date of last payment done towards the credit card account. What is the current status of your account?
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#10
09-28-2006, 05:21 PM
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i was sued by citi and got a warrant in debt. i settled out of court. the thing is, if you don't own property, if you don't have a job.....how would they collect it. the only way they can is if they garnish wages or if they attach a lien on property you owe. other than that you can't get blood from a stone
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#11
08-19-2009, 09:28 PM
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being sued
receive a phone call from a man named richard todd couldn't understand the company name said he was an investigator and he called on a friday and said if he didn't hear from me there would be a devalt judgement against me at 3 o'clock and gave me the case number I called my court house and they said there way no such case number now a sheriff came to my door today and i wasn't home have no idea who this company is or what I owe sheriff will probably be back tomorrow , have read many bad posting about richard todd what should I do( note he called on friday and said the case would be on monday live in pennsylvania)
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#12
08-21-2009, 03:13 PM
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answer the judgment with the courts send a copy to the attorney certified mail and wait. In the meantime start getting some money together to settle it out. If you cannot get the money together ask for a stipulation of judgment. This will allow you to make payments on the debt without the judgment being enforced. Hope that helped
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#16
09-24-2009, 01:05 PM
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send that law office a DV letter.send it certified mail return receipt.also check with your court clerk to see if a suit was actually filed.if not,look into your legal possibilties against the first law firm.one question.who are the law firms?
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giving hope to the hopeless,help to the helpless,and hap to the hapless.
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