Does credit card debt have a statute of limitations?

All consumer debts, from credit card balances to medical bills, have limits on the number of years creditors have a legal right to sue you for payment. In some states, the statute of limitations for credit card debt is three years. In others, it’s up to 10. The rules can vary greatly state to state.

What happens if a credit card company gets a judgment?

If the credit card company gets a judgment, it can use all sorts of collection methods against you to get paid. A credit card company can get a judgment against you in several ways after it has filed a lawsuit.

When was the last judgment placed on my credit report?

I have two credit card judgments on my credit report that were placed in 2011. They are listed as debt collection companies, not the credit card companies. The original debt (last non-payment date) was July 2007. Can they still continue to add/renew these? Is the judgment date from last payment date like your credit report? Or the date of judgment?

Is it worth going to court for unpaid credit card debt?

Your priority is finding out exactly what you owe and to who — and soon. In my experience, if a credit card company went to the trouble to take you to court and get a judgment against you for unpaid bills, you owe at least $5,000. Any less, and it’s not really worth the trouble.

How does suing a credit card company work?

So, credit card companies use the cost-benefit consideration to assess if suing is worth the legal expense. Credit card companies consider the debt’s amount, its recoverability, and legal expenses before suing. However, this consideration doesn’t give you a get out of jail free card regarding credit card debt.

What can a credit card company do with a judgment?

A judgment gives the creditor the right to use additional collection methods to collect the debt owed to them. For example, if the credit card company proves to the court that you owe $5,000, a court may enter a judgment saying that you owe $5,000 (plus costs and interest). The creditor may then use the additional collection methods to get paid.

What happens if a debt collector wins a judgment?

After a debt collector sues you for the debt and wins a judgment, it can get a court order for your bank or credit union to turn over money from your account or prepaid card. This is called a “ garnishment.”

So, credit card companies use the cost-benefit consideration to assess if suing is worth the legal expense. Credit card companies consider the debt’s amount, its recoverability, and legal expenses before suing. However, this consideration doesn’t give you a get out of jail free card regarding credit card debt.

I have two credit card judgments on my credit report that were placed in 2011. They are listed as debt collection companies, not the credit card companies. The original debt (last non-payment date) was July 2007. Can they still continue to add/renew these? Is the judgment date from last payment date like your credit report? Or the date of judgment?