2006-12-23 02:21:31 · 7 answers · asked by nino 1 in Business & Finance ➔ Credit
Yes.
Depending on how much you owe, it will most likely be small claims court, but it is just as serious as one with higher claims. (I forget what the upper limit is for small claims court, $2000, or $5000. It might depend on the state.)
The judge will try to work out a reasonable payment plan. If you truly don't have enough money to pay the credit card off all at once, the judge may order the credit card company to stop charging you interest, and force them to accept a monthly payment that is within your budget, even if they don't like it.
If you do have enough income to cover it, but you are too scatterbrained to make the payments, the judge may order you to pay all of it all at once. It's unlikley that a judge will order a wage attachment your first time in court, but if more than one credit card company sues you, or you have ignored a previous court order to pay, then that's what the judge will order.
This means that the information about your debt will go to your employer, and a certain amount of money will be deducted from your paycheck and sent to the credit card company through the court system. The judge will determine the absolute minimum amount of money you need to pay your rent, utilities and buy food. The rest will go towards paying your debt.
You will not be able to get a new credit card with another company while this is going on. All credit card companies will check your credit report, and if they see a court judgement against you, they will not give you an account.
If you think a credit card company will try to take you to court like that, try calling or writing to them and offer to work something out. Explain your financial circumstances, and offer to make a regular, monthly payment. Make absolutely sure that you not only CAN stick to it, you WILL stick to it. Most credit card companies don't want to go through the hassle of filing court papers and taking the time to go through a lawsuit. They'd rather have the money.
If you really owe a lot, or you have opened other credit cards recently, they may refuse to accept your offer, but send the payments anyway, in the amount you offered to pay. Stop using all your other credit cards, and if there is something you need, pay cash for it. Once they see you really are making an effort to pay, they may decide not to file a lawsuit.
Good luck!
2006-12-23 02:55:15 · answer #1 · answered by devil_bunny_99 3 · 0⤊ 0⤋
Yes. Credit card companies include terms in the cardholder agreement that allow for them to pursue repayment of the original debt, as well as other costs connected with collection of the debt.
You do have some rights regarding this though.
2006-12-23 02:27:23 · answer #2 · answered by Anonymous · 0⤊ 0⤋
when you dont pay back your credit card it will become a judgment on your credit report after some time, can take a couple years for that to happen but you dont actually go to court proceedings
2006-12-23 02:24:31 · answer #3 · answered by Anonymous · 0⤊ 0⤋
yes , they can have there payment automaticly taken out of your check through the courts.
2006-12-23 02:25:11 · answer #4 · answered by lmcm1975 2 · 0⤊ 0⤋
yes
2006-12-23 02:23:40 · answer #5 · answered by george 2 6 · 0⤊ 0⤋
ya sure can
2006-12-23 02:36:11 · answer #6 · answered by Anonymous · 0⤊ 0⤋
They sue all the time, and they will win too.
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2006-12-23 08:20:49 · answer #7 · answered by bijan816 2 · 0⤊ 0⤋