Can credit card companies garnish your wages or take away your house?

• Yes they can, but there are so many factors that must be in order before they can do that. For example, they must consider the balance of the account, if your bank account is a joint account, the laws of the state which you live, etc. They have procedures to follow. It does happen, but as a general rule, they try to stay away from that because it costs them money for lawyers, etc.

• If you do not pay your credit card balance, the credit card company would first have to sue you and get a money judgment. Laws on collecting judgments vary from state to state, but most states would allow some type of wage garnishment. Once entered, state law would determine the amount of interest that accrues on the judgment.

• It is highly unlikely they will ever even come after you. Unless you owe quite a considerable amount they will just write it off and sell the debt for pennies to a collection agency. They too will unlikely ever sue you because of the cost it takes to go to court.

• Credit card companies cannot take your house, they can only put a lien on money owed that would be paid if you sell the house and have equity. As far as garnishing wages and I'm not sure if it's according to state laws, but the state I live in wage garnishment can only be by the Government, IRS or Child Support Agency. You can ask your employer about the laws on wage garnishment.

First answer by ID3635124662. Last edit by Sdresh. Contributor trust: 874 [recommend contributor]. Question popularity: 370 [recommend question]