When a borrower does not pay back their loans on time, a credit card company has a number of options to try to secure repayment. These include filing suit against the borrower, even if the borrower is indigent.
Features
Credit card companies are legally allowed to seek payment in a court of law. According to the Home Buying Institute, this can be done by bringing a petition to a judge demanding that the borrower make good on his debt. After hearing the case, the judge may order the borrower to pay. If this fails, the judge may order the borrower's wages garnished or a lien placed on his home.
Considerations
According to BankRate.com, while a credit card company can legally sue you for non-payment, this does not mean that they will. Instead, the credit card company may consider it financially preferable to sell your debt to a collection agency, who will then set about seeking payment from you.
Effects
While a credit card company can sue you, they can initiate no criminal action against you. The United States does not have any equivalent to debtor's prisons, in which those who cannot pay back a debt are incarcerated. However, although debtors cannot be sent to prison for a failure to repay a debt, they can be locked up for refusing to pay if they have the means.
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