Wisconsin Laws on Credit Card Debt and Being Sued

In August 2010, Minnesota Public Radio reported that Wisconsin had the nation's fifth-lowest average credit card debt, at $4,160. This figure is down 12 percent from the second quarter of 2009. However, it doesn't matter how much debt you have. If you're delinquent in paying your credit cards, you can be sued. Knowing Wisconsin's laws on credit card debt and being sued allows you to be prepared before you're summoned to court.

Statute of Limitations

Every state has limits on how long a creditor may collect credit card debt. This is known as the statute of limitations. Technically, the statute of limitations cannot prevent you from being sued by a creditor. However, the statute of limitations will amount to a defense once you go to court. Credit cards --- known as "open accounts" in law --- have a statute of limitations of six years in Wisconsin. Judgments set in court have a far longer statute of limitations: Judgments last 20 years in Wisconsin, whether they're levied in Wisconsin or another state.

Garnishments

Once you have a judgment entered in court, you may then be taken to court again for your creditor to obtain a writ of garnishment. This means that the creditor has the right to have a portion of your wages automatically deducted for the purpose of repaying debt. You may not have more than 20 percent of your net after-tax earnings garnished under Wisconsin state law. You can also only have your wages garnished by one creditor at a time. The law also allows you to cite a number of exemptions to income garnishment, including child support payments, income below the federal poverty line and eligibility for food stamps, that alter what you may be required to pay.

Interest Rates

Generally, in Wisconsin interest rates are capped at 5 percent. However, the interest rate on a judgment passed against you in court may amount to as much as 12 percent.

Disputing Debt

Under Wisconsin state law, you have 30 days after being informed of your debt to demand that the collection agency or creditor prove that you owe the debt in question. In this time, the creditor or collection agency must cease all activity related to collecting the debt. If the creditor or collection agency cannot document the debt, including proof of ownership, this means that it has no right to collect on the debt, including bringing you to court for it.