Let’s get the disclaimer out of the way: I AM NOT AN ATTORNEY. More importantly, I don’t know the laws in your state or your personal situation. All I have is years of experience and a fairly good idea how creditors (generally credit card companies) work. So I want to write this post for the person who is worried they are going to be sued but has not run this scenario by their lawyer.
It should not be a surprise that YES a creditor does have the ability to sue you for not paying them. Unless you borrowed money from family or a close friend, more than likely there will be a clause or some stipulation that the creditor has recourse for non-payment.
The big misconception is that if you are making some form of payment that they will not sue you. This is far from the case. Any payments not paid pursuant to an agreement with the creditor are simply voluntary payments on a debt. That does not stop the creditor from suing you (and ultimately garnishing your wages, etc.).
Here is the tricky part, more than likely you are dealing with a collection agency at this point. They will say they are a “firm” or “law center” but most are just collection agencies; do not be fooled. Getting them to send you payment arrangements in writing is going to be difficult, if not impossible. The only exception, normally, would be a settlement offer in which you can and should always get in writing. What you do have as evidence is your bank statements and most reputable collection agencies record their calls.
Just as a heads, up if you are dealing with the likes of Capital One or Bank of America, they tend to be much more aggressive then other creditors. However, more than likely if you have a payment arrangement and can give copious notes on who you spoke to and who their boss is, etc… you should not have a problem.
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