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A debtor cannot be criminally prosecuted for unpaid debt unless he or she incurred said debt fraudulently.
It is a myth that creditors (credit card issuers) do not have recourse to collect the debt owed. Credit cards are considered unsecure debt because their is no specific collateral attached, such as a vehicle. The creditor can file a civil suit against the debtor and if awarded a judgment can execute it in the manner allowed by the judgment debtor's state.
Some ways of collecting a judgment are, garnishment of wages or levy of bank accounts or seizure and sale of unexempt personal property or a lien against real property owned by the debtor.
What Does Unsecured Debt Mean?
A loan not secured by an underlying asset or collateral. Unsecured debt is the opposite of secured debt.
The concept of unsecured debt is easily understood when its opposite is considered. A good example of secured debt would be a mortgage. The bank loans out money to a lender who uses it to buy a house; the house becomes the asset backing the loan.
In the case of unsecured debt, a lender loans money without the security that an underlying asset provides. For this reason, unsecured debt carries more risk for the lender, which in turn makes the loan more expensive. The more additional risk that a lender must take on, the higher the rate of interest a borrower must pay, making unsecured loans subject to higher rates.
Hope this helps
Wiki User
∙ 12y ago
Wiki User
∙ 16y agoIf you had no intention of paying it back and the credit card company can prove fraud, yes.
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What happens to unpaid expired credit card?
Only the card expires, not the line of credit it is attached to. So interest will still accrue on the unpaid debt.
Can a collection agency sue for unpaid credit card debt?
yes
Can a credit card company garnish wages for unpaid debt in Texas?
No.
How long does a credit card company have to sue you for unpaid credit card debt?
as long as it remains a part of your credit report, 7 years.
Does the state of Florida allow you to be sued over unpaid credit card debt?
Yes, in Florida, creditors can sue individuals over unpaid credit card debt. If a lawsuit is successful, the court may issue a judgment against the individual requiring them to repay the debt.
Can a credit card company or debt collection agency sue you for an unpaid debt if you no longer live in the country where the debt was incurred?
Yes
Will credit card debt go away after 7 years if unpaid?
No it will not go away in 7 years if it is unpaid. If debt is lft unpaid, the interest rates will continue to go higher and higher.
When someone goes to prison what happens to his credit card debt?
The individual would still be responsible for their credit card debt, but their ability to make payments may be impacted while in prison. The debt will not disappear, and the credit card company may pursue collection efforts or legal action to recover the debt.
Can a credit card company issue a summons for unpaid debt or can a credit card company retain services of an attorney and sue for unpaid debt?
sure they can but they cant collect or that is what happens in texas they can get an injunction against you but that means you have to pay them but not when Absolutely. You own them the money and they can hire an attorney or sell the debt to a collection agency.
What is the statute of limitation on credit card debt in New york?
The statute of limitation for unpaid credit cards in N.Y. is 7 years.
Can a credit card company or debt collection agency sue you for an unpaid debt if you no longer live in the state where the debt was incurred?
Yes. Moving does not eliminate your legal obligations. If you could, you would not be able to use a credit card outside the state you live in.
Does new york allow wage garnishment 4 credit card debt?
No, not for the debt alone. For garnishment to occur in any state, the creditor must have a valid civil judgment. Unpaid credit card debt, however, is a common reason for a judgment to be issued.
