What can the credit card company due to someone in the event of non-payment?

I have a credit card with an amount that I simply can’t pay. The minimum payment is more than I can pay. I’m thinking about not paying on the card and risking my credit. 

Asked on October 6, 2011 under Bankruptcy Law, North Carolina


S.L,. Member, California Bar / FreeAdvice Contributing Attorney

Answered 9 years ago | Contributor

The credit card company could file a lawsuit against you for non-payment.  In addition to the amount owed, you would also be liable for the credit card company's attorney's fees if the credit card company wins the lawsuit.  If the credit card company gets a judgment against you, the judgment could be enforced by a wage garnishment.

If the credit card company gets a judgment against you, you might want to consider filing bankruptcy. Filing bankruptcy will stop a wage garnishment. You will need to list all of your creditors on the bankruptcy.  Chapter 7 bankruptcy is straight liquidation which eliminates your debts.  Your income and other factors will determine whether or not you are eligible to file Chapter 7.  If you are not eligible to file Chapter 7, you will need to file Chapter 13.  Chapter 13 bankruptcy requires a plan (budget) for repayment of your creditors.

It would be premature to file bankruptcy until the credit card company obtains a judgment against you.  If the credit card company obtains a judgment against you, it would be advisable to speak with a bankruptcy attorney.

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