What happens to an unpaid credit cards?

Question

What happens to an unpaid credit cards.?

I have a friend who`s owes 3 separate credit card companies.I think two of them already send it to a collection agency.The toatal amount currently on these cards are over $3,000.He said the only way he can pay for this is when he sells his house 4 years from now.However i am worried that he will have to pay the interest and late fee till he sells his house and it will be higher than the $3000 he now owes.is it possible?Would a credit card company sue before the garnish his wage?How long after payments are miss beforet he sue.and would they sue for higher the amount owes to them?Thanks.

Answer 1

A credit card company may sue him for the amount owed because it is quite a bit of money, relatively speaking. There is no way to tell how long they would take before deciding to sue him. They could take 1 month, 6 months, 2 years, 6 years...

They will be able to sue for an amount higher than what is owed now. They can add interest, penalties, attorney's fees, and so forth.

A credit card company cannot garnish wages until they obtain a judgment against your friend...which means they file suit against him, they win, and then execute the garnishment.

One more point: the credit card company may also decide to sell the debt to a collection agency, and then your friend will have to deal with them.

Your friend needs to negotiate with the credit card company very soon, rather than just ignoring this problem and hoping it goes away.

Answer 2

It depends on credit card company.

When you miss payment the CC company will call you several times.

CC company will go for money judgment. They will wait for anywhere from 3 months to 3 years before going for money judgment.

It also depends on your state and amount owe.

If $500 is owed then they will write-off the loan and sell the paper to junk collector and they will try to collect money.

If you owe $30,000 then they will hire a lawyer and try to get judgment as soon as possible.

Once they get the judgement they depeneding on state rule they can garnish the wage or put a lien on the house, car or garnish the bank account or do all.

If you owe $3000 then just by calling the CC company you can settle the account anywhere from $750 to $1500.