Being Sued for Past Credit Card Debt?
Many consumers wonder if getting sued for past credit card debt is possible. The truth is creditors have the option to sue for debt for several years after payments have stopped being made on the account. It may depend on how much is owed on the account but in many cases, creditors look to collect if the debt has yet to expire.
If the statute of limitations has yet to run out then the consumer or debtor is obligated to pay. Each state has laws regarding time limits of debt. Creditors have a certain period of time to collect debt related to credit card accounts and the time varies state by state. Debt collectors often look to collect but some try to collect after it has expired.
Debt that has expired may also be called zombie debt and debtors should be careful if being sued or contacted regarding old debt. Debt collectors have a habit of buying old debt from creditors in hopes to collect on it when legally they are not able to. If you learn the debt has passed the statute of limitations you’ll need to inform the judge when presented in court.
If you get a summons or notice of a lawsuit filed against you, you should make an attempt to have an answer filed or show up in court on the schedule date. Failing to do so may result in a default judgment which could lead to wage garnishment or seizure of funds from your bank account.
Sometimes a lawsuit is filed for old debt in anticipation of assets you may obtain in the future but it usually depends on how long they have to collect in your state. Review questions and concerns with a legal expert.