Legal Question in Credit and Debt Law in Texas
Credit Card Law Suit
In 1999 we stopped paying on a credit card. We paid some when we could. A year ago we were notified that we were bing sued by a company that had bought the account. We attempted to call the attorney that is handling the case and left a message. No return call. Nothing happened. Last fall were were notified that the company that bought the account sold the account to another company. The same attorney continued to handle this. A court date is set. We are going to attempt to borrow money to pay this off. If we have to go to court can we be charged with credit card fraud? Jailed? The card is in my spouse's name only. He has held the same job for over 20 years. Does the 4 year ''can't file a law suit'' apply? We want to settle this matter, but we can't afford attorney fees up front. What is your recommendation to my questions? Thank you for your time and help.
2 Answers from Attorneys
Re: Credit Card Law Suit
It is not a crime not to pay your debts. There is no debtor's prison in the United States. The statute of limitations for filing suit on a debt is 4 years from the date of default. If the credit card company prevails in their lawsuit to collect the debt, they will be awarded court costs and attorney fees.
Re: Credit Card Law Suit
Depending upon how much is owed, getting legal counsel may be the better deal. The four-year bar has to be specifically pleaded in order to bar the lawsuit. It's quite technical, and really not something you want to do yourself.
Insofar as credit card fraud is concerned, that comes about from falsely using someone else's card, and does not apply to simply stopping making payments on your own card. No jail, no criminal charges in your case.
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