Getting into debt is a big problem, but more and more people are finding themselves in that exact situation. Does this sound familiar? Your credit card bills are spiraling out of control and now you're worried that they are going to use legal action to collect what you owe. So, can a credit card company sue you is the real question.

Let's get right to it, yes they can sue you! Now, the fact that they can sue you is one thing, but whether they will do so successfully is quite another. We'll come back to that in a bit, but first, let's look at what you can do to prevent them from suing you.

It may not be a whole lot of fun, but you need to contact all of your creditors right away and explain your situation. The main thing they want is your money, but if you don't have any to spare, then what they want is for you to communicate with them. Many credit card companies offer hardship programs that make repaying your debt very affordable. You will need to qualify, but if you are in rough shape financially, then you should be able to get on the program.

If you are unable to get on a hardship program, then you should be able to work out some sort of repayment arrangement. Wait! While this may be enough to prevent you from getting sued, at least in the short term, you may not be coming out ahead. The problem is that while your payment may be lowered, you are most likely extending how long you are paying the debt. However, if it's only a temporary arrangement with terms that you know you can afford, then it is an option that can keep you out of court.

Now, let's assume you are at the end of the line and the credit card company is threatening to sue you. The law says that they can only threaten to sue if they really mean it. They are not allowed to make idle threats of legal proceedings in an effort to scare you into paying. You need to take it seriously if they make such a threat.

Respond to any paperwork they send you, and have a lawyer look it over if at all possible. If a court date is selected, then be sure to show up. Tell the truth in court and bring anything you can to back up your statements. If you are in bad shape financially then the judge may give you a really good deal. On the other hand, the judge could side with your creditors and order you to pay. Now, this is not legal advice of any kind, but remember that having a judgment filed against you is not the same as paying it.

So, can a credit card company sue you? Yes, they can, but you can often prevent it from happening by contacting them and working out an arrangement. If that doesn't work, then you may be surprised that going to court actually helps you in the long run.

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