Legal Question in Credit and Debt Law in California

There is a limit of four years from the date of the breach to file a lawsuit. If no suit within that time, they can't pursue any more. If they have a suit and a judgment, then they can garnish your wages.

If the lawsuit was filed within four years of the time you stopped making payments then the credit card company can sue you and obtain a judgment. The judgment entitles the credit card company to garnish your wages, levy your bank account, take your property and file a lien against your real estate. If the lawsuit was filed too late then you can fight it in court by filing an answer within 30 days of being served with the summons and complaint and put in your answer that the creditor should lose because you were not sued within four years of the date you defaulted on the bill.

The creditor can garnish your wages if they obtain a judgment against you. Therefore, .you need to respond to the complaint and assert the statute of limitations as a defense because a written contract can only be sued upon for four years after it is breached.