"I am curious how long after charge off it typically takes for further legal action garnishing/freezing bank accounts etc?"
There is no cut and dry answer to this question. First they have to sue and get a judgment. As backed up as California courts are that could take 2 years or more depending on the jurisdiction. Once they have a judgement they can motion for a debtor's exam at any time to discover assets and bank accounts. From there a levy or garnishment can be issued by the court. Some creditors are more aggressive than others. AMEX, Discover, and Capital One are the top 3 for suing within a year and they keep their accounts they don't typically sell them. As for junk debt buyers if the account is sold off they may sue right away or they may wait. Same for a judgement. Some may move to levy right away and others choose to let it "marinate" and collect post judgement interest and balloon in value.
"Do I have to be served in person before that sort of action can happen so I have some sort of notice any serious legan action is happening so I won't be caught by surprise?"
California does not require personal service for it to be valid. They can serve anyone of legal age in your home. Should they make several attempts they can apply for alternative service which could include leaving the papers on your door otherwise known as "tack and nail" service. There is also by mail or publication. To be sure they don't use sewer service you can watch your docket on line to see if cases are even filed or if service is pending.
@AST wrote:My business (an S-corp) fell into bad times financially during covid and that has spilled over into my personal finances and I now have several credit cards all in default to the tune of about $70k - 2 were just charged off, likely followed by the rest over the next few months unless I win the lottery.
I am verly likely going to declare bankruptcy soon for both the business and personally but I am anxious about what happens in the very near future with the charged off cards?
I assume the card companies either pass along the debt for collection and/or take me to court to try and get a judgment to collect. I am curious how long after charge off it typically takes for further legal action garnishing/freezing bank accounts etc?
It varies. Usually the collection agencies and lawyers try to get a settlement before they file litigation.
Do I have to be served in person before that sort of action can happen so I have some sort of notice any serious legan action is happening so I won't be caught by surprise? I live in California if that makes a difference here in terms of the law relating to collections.
No you don't have to be served in person. You can be served in many different ways, often based on the terms of the credit documents. Frequently default judgments are obtained without the defendant even knowing there's a lawsuit. Frequently nowadays there are arbitration agreements, where the bank can simply file arbitration with a friendly arbitration organization.
I don't make much money expecailly the past several months so I probably don't look like a very good bet in terms of collection but I assume they still vigorously try
Good assumption.
Any insight or experiences here would be greatly appreciated!
thanks in advance
" I frequently go to Canada to visit family and friends."
Any time you are out of the country for a length of time that tolls (stops) the statute of limitations from running. So if the SOL on the debt would be 4 years in California for the time you are out of the jurisdiction the SOL gets extended by that amount.
Another word of caution on arbitration. That strategy can be good for consumer debt but is a REALLY bad idea for business debt. In consumer debt arbitration cases the fees for the consumer are capped at $250 and costs cannot be awarded to the creditor. In a business case the costs are split 50/50 up front and the losing party can be ordered to pay the winner's costs.