If you fail to respond to a complaint, the attorneys for the creditor or debt buyer can move for a default judgment. A default judgment means that since you did not respond to the lawsuit, the party which filed the lawsuit wins automatically. Thus, the creditor or debt buyer can now seek to garnish your wages, or freeze your bank account.
Full Answer
If the agreement is made into a court order and you do not pay back the amount you have agreed to pay, you could be in violation of the court order. Only agree to a repayment plan if you really agree. If you do not agree with the amount stated, or you cannot pay back any amount every month, do not agree to a repayment plan.
Lawsuits in the first stage of credit card collections (your account has never been sent to a debt collector) is not that common, but it does occur. Most of the time (but not all), you have at least 6 months of nonpayment before the risk of being sued begins. The risk of being sued increases incrementally from there.
If you have income that is execution proof a court cannot order you to pay back the debt from that income. But if you agree in a repayment plan to pay a sum out of the protected income, the court can make you pay.
Other harmful consequences can include garnishment of wages, directing your bank to turn over funds from your account, and the seizure of personal property. An attorney can explain the specifics about what might happen in your situation.
You can resolve your debt after the suit is filed by sending a Debt Lawsuit Settlement Letter. After filing your Answer into the case, you should begin the process of negotiating a settlement. Most creditors/collectors want to reach a settlement, and they will often settle for less than the amount you actually owe.
If you ignore your summons, the court is likely to rule in the debt collector's favor and your wages could be garnished until you pay back the amount of money that the court rules you owe.
You can sue someone even if they have no money. The lawsuit does not rely on whether you can pay but on whether you owe a certain debt amount to that plaintiff. Even with no money, the court can decide that the creditor has won the lawsuit, and the opposite party still owes that sum of money.
The short answer to this question is No. The Bill of Rights (Art. III, Sec. 20 ) of the 1987 Charter expressly states that "No person shall be imprisoned for debt..." This is true for credit card debts as well as other personal debts.