If we are paying less than the minimum on our credit card, can they sue us for judgment and garnish our wages?
Question Details: My hours were cut and our credit card reduced our payment and interest rate. Then I was laid off and they increased the rate and payment. We've only been able to pay the previous reduced payment. The credit card company refuses to work with us and says they're ready to sue us because we are past due. If we are paying them every month, can they sue us and successfully garnish our wages even though we are showing good faith in making partial payments each month?
Yes, unfortunately they can do this (but state exemptions may apply). Since they do not want to seem to work with you, possibly your are candidates for bankruptcy. If you file, all collection activity is "stayed " (stopped).
If you have other resources possibly you can use them; bankruptcy is a big step I realize but it may just have to be something that you consider. Here's a link to a site that will explain further: http://www.uscourts.gov/bankruptcycourts/bankruptcybasics.html
Read up on both Chapter 7 and Chapter 13 plans. Best of luck.
