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A Changing of the Debt Lawsuits – Can You Be Sued for Credit Card Debt?

A few years ago, collection agencies trying to collect on money owed would often threaten lawsuits and further action if you didn’t come up with the money to pay back debts. Many times these threats were only just that – threats. Not many wanted to waste the money or the effort back then to follow through with legal action for unpaid balances. Lawsuits after all are pricey and time intensive so many debt collectors and creditors just kept trying to actively collect on a debt for a year or so but eventually ended up writing off the loss.

However, times have changed quickly. There is so much change going on with the economics of the nation as well as in the credit card industry that the tradition of more passive collection efforts are becoming a thing of the past. More and more companies are taking further legal action and more consumers are finding themselves on the wrong side of a lawsuit for unpaid debts. Credit card companies are hurting bad due to the inability of so many account holders to pay their bills in full or even on time. They can no longer afford to just let debt go and have become more serious about taking legal action.

So what else happens?

When you are the defendant in a credit card lawsuit, chances are good that you will get a judgment against you, provided the balances you owe can be proven. If a judgment is made against you, you will need to find a way to make good on the judgment. In many cases, the judgment will call for a garnishment of your wages until the debt is settled in full. Since your wage garnishment makes it known to your employers that you have debt issues, it is in your best interest to avoid letting your debts get too far out of hand.
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