Tuesday, January 8, 2013


People can not be sent to prison for failed to pay their credit card bills. Just because the prison is not a consequence of the outstanding debt, however, this does not mean that the refusal to pay credit card bills have significant legal implications. The credit card companies have the right to bring an action seeking to recover an outstanding debt.

When a consumer applies for a credit card, the credit card company forced to sign the application before approving the new account. By signing the application, the person accepts the terms and conditions of owning the card including the repayment schedule, they must comply.The company provides credit card and then the card agreement containing full disclosure for the credit card companies "fine print" are famous. The credit card company considers the use of card acceptance of the contract. Leaving his credit card bills unpaid, the consumer is violating the contract card credit, he accepted and left open to a lawsuit.


A credit card company may try to collect a debt in different ways. The most common means of collecting credit card companies credit card debt is through phone calls and letters to customers whose payments are late. If the company can not collect using these methods to collect, however, he can sue the debtor for his bills unpaid credit card or remit his debt to a collection agency can continue. In addition to bills themselves, the creditor may add late fees, interest charges and fees of its attorney for the amount claimed in the lawsuit.

The Court will notify the debtor of the impending prosecution via a summons. The debtor has the right to attend the hearing and defend or ignore the summons. If the individual does not take into account the summons, the creditor wins the case by default. Once a creditor wins a lawsuit debt against a person, he may request a writ of garnishment to the court. Through a writ of garnishment, the creditor can force the employer to garnish his wages or force the bank to enter the full amount of the debt of its bank accounts.

Although the creditor has the right to apply legal bills unpaid credit card, it has a limited amount of time to do so, in each state before the statute of limitations for debt collection state enters into force. Once the limitation period passes, the debtor may use the fact that the debt is "prescription" as a defense against future prosecutions. If a person does not know the statute of limitations in the state and is not aware that his debt unpaid credit card is required, the creditor may still obtain a judgment against him and take legal action to recover the claim.

If the debtor is unemployed and lives on a limited income, pursuing a creditor may not be effective in forcing the debtor to pay. Title III of the Act on the Protection of consumer credit limit wage garnishments to 25% of disposable income of the debtor. If the person only works part-time or live below the poverty line, it can not be all disposable income for the creditor to enter legally.In addition, unpaid debts of credit cards can not be trimmed exempt funds such as Social Security payments, child support, retirement funds and unemployment benefits.