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How Often Do Credit Card Companies Sue For Non Payment?

how often do credit card companies sue for nonpayment

If you’re being sued for credit card debt by a credit card company, what do you do now? How often do credit card companies sue for non payment? The first step is to find an experienced, knowledgeable attorney who has handled credit card debt suits in the past. Our dedicated attorneys understand the ins and outs of finances in Kentucky, and we provide a totally different legal experience for our clients. Rather than worrying about what comes next, we help you prepare for life’s next steps. We formulate our legal plans while keeping in mind that you have a future ahead of you. This future is important to both you and us. If you need an attorney who is well-versed in fighting against credit card companies in court, you need O’Bryan Law Offices. To schedule your free consultation, give us a call at 502-339-0222 today.

Can a Credit Card Company Sue You?

Yes, it can. When you default on credit card debt, or fail to pay the debt, credit card companies will consider a lawsuit against you. However, this only occurs after they send you a notice by phone, email, or the mail system. Additionally, credit card companies sometimes deploy collection agencies to try getting the payment from you. They’ll turn up the heat, increase the pressure they put on you to pay, and contact you more frequently. If this fails to work, they will then pursue a lawsuit against you.

What Happens When a Credit Card Company Sues You?

First thing’s first: take this situation seriously. The worst thing you can do is to ignore the situation. When you get those late payment notices from the credit card company, it is better for you to respond in a timely manner. You may be wondering, “How long do late payments stay on credit report documents?” Consult with one of our attorneys at O’Bryan Law Offices before responding. This is especially important if the credit card company has already filed a complaint against you with the court.

In the lawsuit, the credit card company operates as the plaintiff, you operate as the defendant, and the lawsuit is for a breach of contract. The company files the complaint against you, and you must answer this complaint within a certain period of time. Usually, the company requests the amount of debt, as well as attorney fees and court costs. Your response must address all points of the complaint. Keep in mind that, if you fail to answer at all, you will lose the case. You have two chances to answer, the first being the initial complaint, and the second being a chance to answer a request for a default judgment. 

How Often Do Credit Card Companies Sue For Non Payment?

Certain cases exist in which credit card companies will almost always sue for non payment. Below, we outline three common reasons.

  • You have been delinquent on your payments for 180 days. At this point, creditors and companies usually write off your debt as a loss. However, they then usually pursue a repayment suit against you to make up for it.
  • If a credit card company believes they have no other option but to sue, they will do it. Especially in cases where they cannot contact you, they will likely pursue a lawsuit.
  • If you owe a large amount of debt to the credit card company, this alone will often justify a lawsuit. Most of these companies don’t sweat the small stuff, and won’t sue for small sums of money. However, if you owe a large amount of money, they’ll definitely want it back. In these cases, however, they will sometimes accept a lump sum payment (debt settlement) in exchange for avoiding a lawsuit.

What Percentage of Debt Is Typically Accepted in a Settlement?

In general, credit card companies accept anywhere from 30% to 80% of debt in a settlement. The percentage fluctuates dramatically, and depends on several factors. Below, we list some of these factors.

  • The debtor’s financial situation
  • Your cash on hand
  • The age of your debt
  • The creditor in question

How Can I Stop My Wages From Being Garnished?

The laws of Kentucky actually limit the amount of wages that debt collectors can legally garnish from your wages. In general, creditors with court judgments may only garnish 25% of your wages. Keep in mind that creditors may not garnish your wages in credit card debt-related situations without a court judgment. 

As we stated above, creditors can only garnish 25% of your weekly wages. Additionally, the amount garnished must not exceed your disposable income for that week. For example, let’s say that you make exactly $400 in one week after deductions. The creditor is only allowed to take $100 from you. On the other hand, if you work for 32 hours in a week, they may only garnish those 2 hours of pay beyond 30 hours.

What Happens When a Judgment Is Obtained?

Creditors obtain court judgments against you in a number of ways. Below, we include the most common reasons why the courts award creditors with judgments against defendants.

  • You fail to respond to the complaint in a timely manner.
  • You refuse to respond to a discovery request.
  • If you lose a summary judgment motion.
  • You lose the trial.

Most judgments include more than just the debt itself. In many cases, they also include interest on the debt, court costs, and attorney fees. After obtaining these judgments, they typically last anywhere from 5-20 years depending on the state. 

Contact an Experienced Credit Card Debt Lawyer in Kentucky

Are you being sued for credit card debt? The legal team at O’Bryan Law Offices offers our clients in Kentucky and Indiana personalized, forward-looking plans tailored to their specific needs. We provide attentive, knowledgeable service in consumer cases, from bankruptcy in Kentucky to credit card debt. Not having one’s finances in order makes life difficult, and much more stressful than it has to be. If you want to get your life back on track, move forward, and eliminate your financial stress, contact us today. Call our office at 502-339-0222 to set up your free consultation.


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