Posted on May 21, 2009 at 11:07 am Whenever I pick up the phone to talk to a collector, it seems this is their favorite threat to use. "Well we will just sue you if you do not pay up now!" They also mention that they don't care what I do right now because they will just garnish my wages or whatever. I don't know. Does anyone know if they can actually do this?

Posted on May 21, 2009 at 11:57 am Ultimately, yes, a debtor can be sued for a credit card debt. However, before this happens, the credit card company has to place the account for collection with an attorney's office that is licensed to practice in the state where the debtor resides. That way, if they choose to take the legal path to collect the debt, they have legal representation to work on their bahalf. If it is a collection agency who is calling you and threatening legal action, you should take it with a grain of salt as they are not attorneys licensed where you live. It is a common scare tactic that a lot of debt collectors use. Now, if an attorneys office actually files a lawsuit against the debtor, and nothing is worked out in terms of a payment plan or settlement, then they can do a number of things to try and get the money that is owed to them. Wage garnishments, property liens, and bank account levies can all be executed with a court order so the creditor can get paid. But, a debtor should have ample opportunity to work a resolution out with the law firm before it is necessary for them to file suit. They want to avoid doing so as filing a lawsuit to collect a debt can be a very time consuming and drawn out process, and most creditors would prefer to collect using alternative tactics.

Posted on May 21, 2009 at 2:47 pm Debt Helper you make some very good points here. However, I would like to caution ErickJ on something you touched on. You mentioned that the creditor would have to send the attorney to a law firm first before a lawsuit would ever be filed. While that is typically the route that most creditors would take, it is also necessary for you ErickJ (and anyone with credit card debt) to keep in mind that some creditors have in-house attorneys on staff who have the capability of preparing and filing lawsuits as well. These in-house attorneys are located in certain states (not every state), so it still depends on where you live but it is something that every debtor should be aware of.

Posted on June 1, 2009 at 11:38 am Yes, Mr. Debt is correct, some have in-house attorneys. Also, I know that Asset Acceptance now works with in-house attorneys who have been filing lawsuits to collect on some of their accounts. Again, one of their attorneys would have to be licensed in your state to prepare and file a lawsuit, but it is something you should be aware of. Asset Acceptance is a debt buyer that purchases accounts at all stages of post-charge off delinquency. I don't know of any other debt buyers who have in-house attorneys but if anyone else does feel free to let us know!

Posted on June 2, 2009 at 12:30 am So here's the thing with collectors filing lawsuits - they don't necessarily need an attorney in order to do it because small claims court does not require a lawyer to file suit.  In other words, if they are located in your state or close enough to drive there, then they can file a lawsuit in small claims court and try to obtain a judgment against you even without even hiring an attorney.  That's my understanding of why debt buyers like Asset Acceptance will file lawsuits.  Usually it doesn't make sense for them to hire a lawyer, pay retainer fees, and split whatever they collect on a debt that has a low probability of being paid.  Having a full time in-house attorney to do this might be even more expensive for them.  When all it costs is the filing fees and a process server though, then it suddenly makes sense for them to maybe give it a shot.   

Posted on August 20, 2009 at 3:54 am "Can credit card companies sue me and even garnish my wages?"Yes but it goes through a process. The debt that the collection agency is trying to collect from you must first be verified. After receiving their first call they are to send you a written notice stating the amount that you owed, your creditors info, and that if you wish to verify that debt, you may do so.You'd have to also check if the statute of limitations (on collection of that deb) in your state has elapsed- because if it has, then you're not legally obliged to pay for it.

Posted on August 20, 2009 at 4:01 am I think the question "Can credit card companies sue me and garnish my wages?" has already been answered.-credit card companies pass the account on to collections, and collections (their own or a third party, even junk debt buyers) contacts you.-you are given time to respond and you may ask for the debt to be verified. Also check your state's SoL-if they fail to verify your debt within the lawful time, consider the debt non-existent (?) Can somebody verify this? Also, if the SoL on  debt collections in your state is done, then you don't have to worry about a judgment-but you may have to still send a cease and desist letter to the agency for them to quit hounding you*there are cases in which some collection agencies would still attempt to collect from you using the SoL on credit reporting. If your debt stays on record for 7 years, and say you live in California, where the SoL on debt collection is just 4 years, you might get confused and they'd be able to convince you to admit to the debt.

Posted on August 21, 2009 at 5:50 am Also, if the SoL on  debt collections in your state is done, then you don't have to worry about a judgment For the love of God, this is wrong.  The statute of limitations is an AFFIRMATIVE DEFENSE that can be raised by a defendant as to why they do not owe a debt.  So you can be sued for a debt, but if you do not raise the SOL defense yes there can be a judgment against you.  A judge is not going to tell you that the SOL has passed nor do they care unless you raise that defense.

Posted on August 21, 2009 at 8:56 am That is correct. But I would assume that the person who mentioned that was making that statement in general terms. As long as the debtor is aware of the fact that the statute of limitations has expired, and knows to bring that up during the proceedings, then they shouldn't have to worry about a judgment being executed against them. But as David mentioned, if you fail to do that or aren't even aware of that fact, then yes, a creditor card company may sue you and end up garnishing your wages. If you are sued and want to avoid that situation, I recommend contacting whoever is handling the account for collection and seeing what your options are for a settlement or payment plan.

Posted on October 19, 2009 at 3:46 am Also, if the SoL on  debt collections in your state is done, then you don't have to worry about a judgment-but you may have to still send a cease and desist letter to the agency for them to quit hounding youRevived Paths probably meant that if there's nobody suing the consumer (because they failed to verify the debt) and the SoL is up then there's nothing to worry about. Of course if the consumer gets sued,  he/she would have to raise that defense.