When credit card debts go unpaid, the credit card company or its debt collector may sue you to get its money. Because civil suits are legal actions between two or more parties and not actions taken by the court, you won't be sent to jail as a result of being sued for credit card debt. You may be ordered to pay the debt by the court, however.
Credit Card Collections
Before civil suits are filed by a credit card company, the company attempts to settle the debt out of court. If collections efforts don't succeed, the debt is turned over to a collection agency and written off by the credit card company. If the collection agency is unable to collect, it may file a civil suit against you seeking the total amount due plus collection costs.
Judgment
If a judge rules in favor of the credit card company or collection agency, you'll be ordered to pay the debt plus any administrative fees or court costs. Credit card debt is considered a breach of contract, not a criminal act provided the debt wasn't attained through fraud, so you will not be sent to jail as part of the judgment.
Contempt of Court
In some cases, you can be found in contempt of court for failure to pay a credit card debt after a court judgment has been rendered. While this is rare, it can happen if upon review, the judge decides that you have put forth no effort to comply with the court's order. If you are found in contempt of court, you may be given additional fines or sentenced to time in jail. This is considered a separate charge from the lawsuit that led to the judgment.
Other Court Actions
Most judges will try other means to collect what you owe if you have not made payment by the time they review the case. The most common method is to garnish your wages, taking money from your paycheck. If your income is limited or you can't pay for some other reason, the court may adjust your payments lower or issue an order reducing the debt.
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