Legal Question in Credit and Debt Law in California

Credit card debt... What's the average cut off for suing?
This is not so much a question about the actual law but more a question about tendancies when it comes to deciding rather or not to sue over debt. I had a debt with MBNA that's been in collection for 1 yr. I realize that means that for 3 more yrs I could be sued anytime, but I'm wondering what is the likelyhood of this. Obviously suing is expensive and it isn't worth the expense to sue everyone who owes. Have you noticed a cut off point where these companies tend to say it just isn't worth it. In my case the debt is now probably around $15,000.

Also I know that if they do sue and garnish wages there is a limit (I think 25%). But does the court take into mind all your other bills before giving them this percentage. I'd like to at the very least continue to stay current with all my other bills, but that + rent takes 90% of my income.

Lastly if they sue does the court consider the fact that the only reason the debt still exists is due to high interest + penalties. For instance, my original debt was about $13,000 and I easily made over $13,000 in payments during the 5 years I was attepting to pay it off. Yet I still owe over $13,000. Does the court take things like this in mind and make adjustments based on that?

Asked on 4/20/06, 7:34 pm

2 Answers from Attorneys

Robert F. Cohen Law Office of Robert F. Cohen

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Re: Credit card debt... What's the average cut off for suing?

The statute of limitation is four years from the last payment, not from when it was placed in collections. A $15,000 bill is worthwhile for a lawyer to take on and try to collect. You might pay a lawyer a couple of hundred dollars to try to negotiate the bill, and set up a payment schedule. It's not good to have a judgment on your credit report.

Answered on 4/20/06, 10:28 pm

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