Yes, credit card companies can and will sue you. When that happens, you have a few choices.
Do nothing – If you do nothing they will win an automatic judgment against you and eventually will garnish wages, place liens on property and levies on bank accounts. In other words, doing nothing will not result in a favorable outcome.
Go to court – Having a judge hear your case is always an option, but keep a few things in mind. Reasons and excuses are not defenses. In other words, not being able to pay your bill due to a financial difficulty is not a defense against being sued. Defenses must carry legal merit. For example if you had your identity stolen which resulted in someone opening a card in your name and you had a police report. That would be a defense. Also remember that when you go to court, you are giving up control over the outcome of your case. The judge will most likely simple state whether or not you owe the money. The collection process will be up to the plaintiff. So garnishing wages and forcefully getting money from you will not be prevented unless you win you case.
Mediate – Like the saying goes, “Mediate, don’t litigate!” When you choose mediation for your credit card lawsuit you remain in control of your case. You are able to workout a deal which will work for both sides. Thus, you remain in control; you prevent wage garnishments, judgments, liens, levies and everything else which can come out of losing or ignoring a case.
Bankruptcy – Sometimes your situation is quite dire and no amount of negotiation will help. In this case bankruptcy can offer relief you are looking for, but don’t kid your selves. Bankruptcy is very serious and should only be your last case result.
Regardless of where you fall under all of these scenarios, you should always make a fully educated decision.
Keep in mind that even if you already have a judgment, or the time to respond to the court has expired you can still find a way to take care of this issue. The worst thing you can do is give up. Don’t give up!