You thought harassing calls and threats from creditors for defaulting on your debts was hitting credit repair bottom. Creditors are taking it a step further as lawsuits are rising against consumers for not paying up on unsecured amounts owed, like credit card balances. When and how might a creditor come after you for past money due?

The original creditor proves you owe. Typically the original creditor provides a signed document (like a credit card contract agreement) that proves you owe the debt. Don’t allow a third party collector to threaten legal recourse as both these actions are illegal according to the Fair Debt Collection Practices.

Your wages can be garnished. This is when the court allows the creditor to seize your paycheck to have payments automatically taken out, which can be 25% of your take-home income each time. Garnishments jumped 30% in Cleveland according to this New York Times article on struggling borrowers. Unpaid student loans have a good chance of going this route.

Higher interest rates and other fees can be enacted. If a court rules in favor for the creditor, your interest rates can hit sky-high numbers. You can also be hit with lawyer fees. To learn more about your legal rights and court terms used in debt cases, try this legal aid link.

Your state court laws allow aggressive collection tactics. Depending on where you live, many of the above actions can happen without the creditor even taking you to court. For state-specific overviews on debt laws, go to this PrivacyRights.org link.

You’ve done nothing about it. Silence equates to an easy target for collectors. The best way to deal with debts in default is to remain a part of the process. Remember you have rights and to stay away from certain activity. You have the case in your favor if you can prove you’ve attempted to negotiate a payment plan or reported harassment from the creditors.