Being sued for a credit card debt merely means that someone is claiming you borrowed money, that you failed to pay, that the balance is what they claim it to be, and that you are legally obligated to pay this company. is an independent, advertising-supported comparison service. Dear Randy, Please review our list of best credit cards, or use our CardMatch™ tool to find cards matched to your needs. Privacy Policy. How can they use another states laws? I was in a bad spot financially so I jumped on the offer. If your original creditor has charged off your debt and sold it to a collection agency, do you have to pay them? My recommendation is to work with the collector to pay what you owe before legal action is taken. The editorial content on this page is based solely on the objective assessment of our writers and is not driven by advertising dollars. ", If you’re headed to Europe, it would be wise to upgrade your magnetic-stripe card to a chip card as many countries have migrated to EMV technology. Join our newsletter to get the most important credit card news and financial insights delivered straight to your inbox. This compensation may impact how and where products appear on this site, including, for example, the order in which they may appear within listing categories. "is a former personal finance contributor. The case is under that states jurisdiction. Subscribe to get the week’s most important news in your inbox every week. Well, personally, do you think it's likely for a bank to go through the trouble of suing and domesticating a judgment for just a grand? Keep an eye on your inbox—we’ll be sending over your first message soon. At what point can the bank no longer domesticate the judgment? Should things progress to that point, a judge could issue a judgment to the collector for the amount due and even garnish your wages. The reference to pre-litigation at this stage of default with a citi bank credit card or personal loan can mean nothing of consequence, or that your account has been, or soon will be, flagged for placement with an attorney who may be authorized to sue you in their effort to collect. Dear Let’s Talk Credit, To answer the second part of your question, yes, a collector can sue you to collect what is owed. Because of that, do creditors tend to not sue as much in this state as compared to others? to maintain accurate information. See the online credit card applications for details about the terms and conditions of an offer. My concern is that I signed something giving them permission to do this without my knowledge, and have no way to find out if and where a suit might be filed. ADVERTISER DISCLOSURE is an independent, advertising-supported comparison service. And can they file a judgment against you? Default on credit card bills with Synchrony Bank. does not include the entire universe of available financial or credit offers. the "Apply Now" button, you can review the credit card terms and conditions on the issuer's web site. Do not agree to a monthly amount unless you know that you can afford to make the payments. If you have the funds, you could offer to settle the debt for less than the total amount due in one lump sum payment. credit ranges are derived from FICO® Score 8, which is one of many different types of credit scores. Not so. Other factors, such as our proprietary website's rules and the likelihood of applicants' credit approval also impact how and where products appear on the site. Jane McNamara However, all credit card information is presented without warranty. Other factors, such as our own proprietary website rules and the likelihood of applicants' credit approval also impact how and where products appear on this site. For example, if you settle a $5,000 debt for $2,000, you will owe taxes on the forgiven debt amount of $3,000. The offers that appear on this site are from companies from which receives compensation. Correct? Yes, debt collectors have the right to collect, and sue, Credit card debt negotiation in 3 (not) easy steps. Is it common for a creditor to try and do this? How to Know if Your Bank Will Sue Over Credit Card Defaults My question involves collection proceedings in the State of: Texas. Charging off the debt does not change the original agreement between you and the creditor; the debt is still owed. In fact, charging off a debt is a simple accounting measure that moves a debt from an asset to a liability. I can track … If the lawsuit is filed in Texas. Once a debt passes beyond the statute of limitation in your state, a debt collector no longer has the right to sue you for payment. Finally, if you do settle the debt, if the negotiations reduce your debt by $600 or more, you will be issued a 1099-C tax form. By providing my email address, I agree to’s In April 2015 I received a debt settlement letter from Synchrony bank to pay off my account for 1/3rd of the balance. See related:Credit card debt negotiation in 3 (not) easy steps. Get essential reads every week with our newsletter. Keep copies of the settlement agreement and proof of your payment.