Can a credit card company sue over an uncollected debt?
Unsecured debt just means that they don’t have a specific pledge of collateral (your house, in the case of a mortgage, or a car for a car loan). That makes it easier and faster for them to repossess the security. They may even be able to take the collateral without a specific court order, though it varies from place to place. Unsecured debt doesn’t mean that repaying the debt is optional. You signed a contract with them when you applied for the credit card. If you’re in default, you’re in breach of contract. The text of that contract specifically authorized various ways for them to collect that debt, including turning it over to a collection agency and taking you to court. You might want to go over that contract. They’ll happily send you a copy if you don’t have one. Your primary legal recourse over debt you can’t pay is bankruptcy, in which you declare that your debts are greater than what you own and the courts tell your creditors to back off. Declaring bankruptcy is harder today tha
