If you are overwhelmed by credit card debt, you should be aware that you can be sued by credit card companies. After a creditor wins its lawsuit, it can take steps to collect its judgment, including wage garnishment, asset seizure and property liens.
Lawsuits
A creditor has the option of suing to collect a debt, provided it does so within the statute of limitations for filing a lawsuit in your state. Each state sets its own statute of limitations for collecting credit card debt, which can range from just a few years to a decade or more. Lawsuits cannot be filed after the statute of limitations has expired.
Credit Consequences
If you are successfully sued for credit card debt, your credit report will likely list both your delinquent credit card account as well as the judgment, causing further damage to your credit.
Misconceptions
Even though it is legal for a credit card company to sue you for an unpaid debt, you cannot be sent to jail for owing a debt. If a bill collector working for a credit card company threatens you with jail, he has violated the federal Fair Debt Collection Practices Act, and you may have grounds to sue the bill collector for violating your rights.
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