If you do not pay your credit card debt as stipulated in your original contract, your credit card company will eventually be forced to charge off the debt as uncollectible and sell it to a collection agency.
Facts
A collection agency may attempt to sue you for the credit card debt. If this occurs, you will be served with a summons to appear in court and a formal complaint.
Time Frame
A collection agency must sue you within your state's debt collection statute of limitations. If the lawsuit is filed after the statute of limitations expires, you can notify the court and have the lawsuit dismissed.
Considerations
Not every collection agency will choose to sue you to collect a credit card debt. The higher the debt you owe is, the greater your odds of being sued.
Options
You can appear in court and demand that the plaintiff prove the debt is yours. In many cases, the original creditor does not provide to the collection agency when the debt is sold any paperwork that legally connects the debt to you.
Effects
If the collection agency wins its lawsuit, a judgment will be filed against you and will appear on your credit report. In addition, a judgment can result in a wage garnishment or bank levy if you live in a state that permits such practices to recover debts other than government debts.
Warning
If you neglect to appear in court to defend yourself, the plaintiff will be awarded a judgment by default - even if the statute of limitations on the debt has expired.
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