Credit Card Debt Lawsuits

People often ask can you be sued for credit card debts and the short answer is yes you can. You owe this money and you need to repay it or your creditors will take action against you. But the good news is that there are various laws and regulations in place that these financial institutions must adhere to. You, as a consumer, are very well protected especially when compared to practices outside of the US.

There are two types of law, State Laws and Federal Laws. Every State will have their own rules with regard to debt collection so it is best if you read up on your local ones. Your bank or financial institution will be able to provide you with a copy of the relevant laws. There should be a statute of limitation which will dictate how long your creditors have to file a lawsuit to recover their money. 

This does vary but usually lies within 3 to 10 years but you should check. Federal laws apply to everyone regardless of where you live. The law you are probably now most interested in will be the Federal Fair Debt Collection Practices Act.  This law covers how your creditors must behave when attempting to collect monies due.  It also dictates where and when lawsuits can be filed if you live in a different state to your creditor. Another act you should familiarize yourself with is the Credit Card Reform act. Depending on your age and circumstances, you may find that some of these provisions are relevant to your case.

If you are having problems repaying your debts, make an emergency appointment with a local debt counseling service. You should be able to find a free advisor in your area such as one provided by a charity. If possible avoid the paid debt negotiation adviser as any spare funds you have should be directed towards repaying your creditors. Your adviser and the people you owe money to will want to see a full income and expenditure account. You will need to write down exactly how much money you make from all sources and what you spend this money on. Some debts are a priority meaning that you should always pay these first but your advisor will go through this with you.

Whatever you do, do not ignore the situation you are in. It will only get worse.  All credit card debt problems can be resolved one way or another. Bankruptcy is always an option although one you do not want to enter into lightly and definitely not without proper advice. 

Suing you isn't your creditors' only option. They could sell your debt onto a third party company who won't care what your personal circumstances are. But if you have had a good record with your bank and your money problems are recent, you may find that they are willing to work with you to reach a solution. 

So now you know the answer to can you be sued for credit card debts is yes, you need to do everything you can to avoid this scenario.