You applied for a credit card.  The issuing bank was willing to provide you with one and a line of credit in exchange for your agreement to repay the loan with interest.  You agreed to the terms, accepted the card and used it as a means of acquiring credit that you used for to make purchases of some sort.  Now, you owe a debt to the creditor but you’re unable to make the agreed upon payments.  What would happen if you decided to simply ignore your agreement?  Can you be sued for credit card debts?

The short answer to that question is “yes”.  Creditors may opt to pursue legal action to enforce the terms of your contract.  They can drag you into court in hopes of forcing you to pay your obligation.  Even in cases where you may believe that you’ve been released from your obligation to pay due to behavior on the part of the creditor or some other situation, they may still opt to sue you.

That’s really not the most important question, though.  After all, people can sue one another over anything.  One doesn’t need a very good reason to initiate a civil suit.  The more important consideration is whether a credit card company will actually sue you for failing to pay your obligation and what the likely outcome of a lawsuit might be.

It’s hard to assess the likelihood of a lawsuit.  Much of the creditor’s decision will most likely hinge on the amount of debt owned and the likelihood of convincing you to make payments via some less labor-intensive method.  If you don’t owe that much or the creditor believes there is another way to reach an agreement for repayment with you, the likelihood of a lawsuit is rather slight.

If, on the other hand, you’ve borrowed a great deal of money with your credit card and the bank doesn’t feel as if you’re interested in reaching a satisfactory agreement to pay your obligation, it shouldn’t come as a surprise if you’re later served with notice of a lawsuit.  Creditors are becoming more aggressive in their efforts to secure payments.  They’ve even been known to sue students over credit card debts.

If that should happen and you don’t have a compelling legal argument for your lack of payments, the courts will probably issue an order requiring you to make payments and/or to settle the debt for a lump sum.  The courts can garnish your wages, taking money directly from your paycheck before you even see it, to make sure that the creditor is paid according to  the order.  Many jurisdictions will provide you with information regarding the way these lawsuits work in greater detail.  The New York courts, for instance, provide an informative online overview of the process.

Many people mistakenly believe they’ll be able to escape their debt if sued by explaining the details of their personal story and the reasons why they can’t be expected to repay the debt.  In reality, these arguments are rarely persuasive in a courtroom situation.  If you’re sued over credit card debt, it’s a matter of your contract and whether lived up to it.  The context and surrounding circumstances only very rarely will have an influence on the court’s determination regarding your debt and its repayment.  Put simply, if you do owe the money you’ll probably be held responsible for its repayment.  That’s one reason why many courts recommend that sued parties obtain good legal counsel.  If you’re going to stand a chance against the credit card companies and their collection agencies, you’ll want a good lawyer on your side.

Can you be sued for credit card debts?  Absolutely.  Credit card companies view a failure to repay the same way others might perceive theft.  They gave you the money in exchange for your agreement to repay the obligation with interest.  If you don’t pay them back, it’s no different in terms of their bottom line than if you stole the cash from a company safe.

The moral of the story is to be proactive instead of waiting for a lawsuit to hit you.  If you’re struggling with credit card debts, contact the card’s issuing bank and discuss the situation.  Remember, the credit card companies want to find ways to secure payment.  They don’t want to file suit if it’s not necessary.  In most cases, you will have the opportunity to avoid a lawsuit.    Take advantage of that opportunity and avoid the potentially nasty consequences of being sued.