When does a credit card company go to civil court?

The company usually notifies you by phone or mail that you have been late with your payments after 60 days or 90 days. When you fail to make payments after that the company usually hires a collection agency. If their efforts prove unsuccessful the company can file suit against you in civil court.

How does a credit card company obtain a judgment?

In order to obtain a judgment, the credit card company must first file a lawsuit against you in a civil court. The creditor’s attorney will file a document called a complaint and deliver the complaint to you.

Who is the plaintiff in a credit card lawsuit?

As the party bringing the lawsuit, the credit card company is the “plaintiff.” The complaint is a legal document which describes the facts giving rise to the lawsuit. You should read the complaint closely. You also might be sued by a debt collection company which has bought the debt.

What happens when your credit card company sues you?

Ignoring debt collection calls usually doesn’t make them go away. Ignore your credit card debt long enough, and your credit card company may sell your account to a collection agency or sue you in civil court for the balance.

What happens if you get a civil judgment for credit card debt?

The company might take money from your wages or bank account, or seek payment through assets that you own, such as your car. It can also file a lien against your property, giving the company a legal right to use it as security for repayment or collateral for the debt when the property is sold. These actions cannot be done without a civil judgment.

What happens if I fail to pay a credit card debt?

If you fail to honor your obligation to pay the debt, the creditor can file a lawsuit against you and seek a civil judgment. If and when the company gets a court judgment against you it can use assets you own to cover the debt.