Legal Question in Credit and Debt Law in California

Re: Being sued by credit card company

The answer to your first question is yes. Even though you are not currently working, in California, a judgment is valid for 10 years and can be renewed for additional 10 year periods indefinitely. While the judgment remains unpaid, it collects interest at the simple rate of 10% per annum. Creditors (including collection agencies) will simply obtain a judgment and wait until you have some property available for satisfaction of the judgment (i.e. wages from a job, bank accounts, etc.)

In answer to your second question, once a judgment is obtained, a vehicle is property subject to enforcement of judgment. However, whether a creditor is likely to sell your vehicle to satisfy the judgment depends upon a number of factors, including the amount of equity in the vehicle, the age of the vehicle, and the amount of the judgment. Selling a vehicle can be costly, so unless a creditor is going to receive a substantial amount of its judgment, it will likely not pursue your car.

Finally, if you have a joint account with your significant other, your portion of the account is available for enforcement of the judgment. The creditor will first be required to obtain an order from the court to seize your portion of the account. While this may sound like your significant other's interest in the account is protected, if you anticipate being sued, you should immediately set up separate accounts so that your significant other's account and assets will not be in jeapordy in any way.