Can you be sued for credit card debts?

Can you be sued for credit card debts? The answer is yes, you stand a good chance of being sued if you fail to make payments for credit card debts. However, there are many factors that determine whether you are the right candidate for being sued. Creditors threaten to file a lawsuit against you if they fail to collect the outstanding balance. Mostly, creditors try to settle the issue amicably and avoid filing lawsuits. It doesn’t necessarily mean that you will be spared for non payment every time.

If you have fallen behind on payments for 60 days or more, your creditor may sue you. If there is a co-signer, the creditors will try to locate your co-signer if they are not able to trace you. They also keep track whether you are with your current employer or not. Your age is also a deciding factor for being sued. For instance if you are 40 years or less and have several years to retire, creditors will put in all effort to make you pay up the outstanding balance. In the event you don’t make payments, you are likely to be sued. In fact, the factors that made you a prospective customer may be the factors that will decide whether you should be sued or not.

Using Statute of Limitation as your defense

When you are dealing with creditors, you may come across creditors of differing attitudes. There are many creditors who will try to sue you even if several years have passed since you last made payments for your credit card debts. You can make use of SOL on debts in the particular state you are residing. The SOL on debts differs from one state to another. If creditors threaten to sue you and if you are well past the SOL, you can defend yourself. If your debts are well past the SOL, a creditor cannot sue you.

Being sued by a collection agency-Is it possible?

A collection agency can file a lawsuit provided they have an in-house attorney. However, all collection agencies do not have an attorney working for them in-house. Collection agencies often harass debtors by sending mails, notices threatening to sue you. However, if you do receive such threats, it is better to validate your credit card debts.

The fed has formulated certain rules and guidelines that safeguard the rights of debtors. You should have a thorough understanding of your rights. And it is always better to report illegal activities of collection agencies or creditors to the Attorney General of the state in which you are residing.