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Terry L.
Terry L., Attorney
Category: Bankruptcy Law
Satisfied Customers: 2830
Experience:  Better Business Bureau. 18yrs bankruptcy experience. Chicago Bar Assoc. American Bankruptcy Institute member.
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If I quit paying my credit cards, but didnt file for bankrupcty

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If I quit paying my credit cards, but didn't file for bankrupcty right away, what recourse do the credit card companies have? I know they will hound me for the money, but is that typically something they handle 'in house" or do they use collection agencies or do they attempt to get a court judgement?

Terry L. :

Hi, thanks for your question. You should hire a lawyer for specific legal advice. No attorney client relationship is created here.

Terry L. :

Good question.

Terry L. :

Creditors can call or they can sue to obtain a judgment.

Terry L. :

Once they get a judgment, they can freeze assets, seize bank accounts, garnish wages, put a lien on assets like a home etc.

Terry L. :

They can also send the account to various collection agencies, who can then attempt to collect, and/or sue as well.

Terry L. :

Each company varies. I've seen many use all of the above too!

Terry L. :

Let me know if you have any other questions.
Thanks

Customer: replied 5 years ago.
In your experience, do credit card companies typically sue? If so, how long do they try to call before they would attempt to sue? Or is it dependent on how much money is owed? The total of all the credit cards is approximately $60K but I don't believe any individual account is over $10k. Would they likely sue for that? And lastly if they did obtain a judgement, and I filed for bankruptcy later could that be included in a bankruptcy?
They do all the time. Each company has their own internal timelines as to when to sue. Usually money talks, so if you are pro-active in discussing the matter with them and making payments, they are less likely to pull the trigger and sue. I've seen creditors sue for just a few hundred bucks, so amount isn't the determining factor.

The bankruptcy stops the action, as the debt is included in the case, regardless of the case status of the suit. Always best to file before the suits though, as the lawsuits will stay on your credit for 7 years that they occurred.
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