You may have come across troubled debtors asking “Can you be sued for credit card debts?” The answer is yes, but only under certain conditions. Creditors tend to sue you if you are behind on payments for more than 60 days and if there is a court order against you. However, they usually try to avoid filing lawsuit and instead adopt ways that will make you pay up. Instead of suing you, creditors will find out if you have a co-signer who can pay the dues if you fail to do so.
If the creditor finds that you are employed, it means that you are having a steady flow of income. As such you are in a position to pay up. However, this may not be true for debtors that are older. Under such circumstances, creditors think that the debtor may not have a steady flow of income and his hopes of recovering the debt diminishes.
In fact, the reasons that caused creditors to extend a loan to you may be the same reasons why a creditor will come after you for his money. If you receive a notice from the creditor, first find out how genuine their demand is. You can do so by checking the “SOL” or Statute of Limitation. If you find that your account has passed the SOL, you can use it as a defense. If not, it is better to pay off the debt if the demands made by the creditor are valid. This is because if a judgment is passed against you, it stays in your credit report for a period of 7 years. And this will hurt your credit rating miserably. So, keeping your best interest in mind, it is better for you to negotiate with the creditor so that you can work out a way after talking to your creditor.
If you are facing financial hardship or you anticipate a financial crisis in near future, it is best to convey the reason of your non-payment well in advance. By doing so, you can work out an alternative payment plan with the creditor so that you don’t fall behind on payments and the creditor doesn’t file a lawsuit against you.