[j-nice]

Help, depending on the state you live in will determine the final collection laws. But MOST credit collections follow the same process. After 180 days (6 months) of non-payment the creditor will charge off the debt (they write it off as a loss on their books), they then sell the debt to a collection agency for pennies on the dollar. The collection agency tells you they are trying to collect a debt for the original creditor which is actually a lie because any money they recoup from you they keep (the creditor has already written off the debt and sold the account). The collection agency then goes after you through judgements. If they sue you then you must show up in court or it is an automatic default judgment and they can garnish your wages or seize your bank accounts (actually up to 20% of your pay).

The dollar amount does not determine if they will sue you or not. They will sue you if they determine you are collectable (i.e. have an open bank account, gainfully employed, etc). It is necessary to stay in communication with the collection agency and explain to them your inability to pay. They are sneaky and will pull your credit reports to see if you are paying others and they can even run traces to determine where you bank at based on your social security number. Basically, if you haven't paid a credit card in 6 months you need to be careful with your bank accounts and read any mail sent to you by the collection agency.