Answer: -They can legally sue you for the funds that you owe them. They usually try to avoid that by settling the account with you directly. Let's say you owe them $1,000 then why are they going to spend $250 to take you to court. Most attorneys like to use those tactics to get you to pay something any thing for that matter. Once you pay the account then that will help to improve your credit overall anyway. -Absolutley! They can and will do it. It's unfortunate it got to this point, but just be willing to work with them. They'll probably try to set you up on a payment plan, and it may come out of your check. Jump on it if you can to avoid the court fees! Sorry that had to happen to you. -The courts will force a payment plan and may garnish your wages. But bigger than this...you've been a victim of identity theft and you've done nothing about it? Your roommate committed a federal crime...a felony...that could land him in jail and you've just let him destroy the next 7+ years of your life? Why haven't you filed to change your SSN? Why haven't you called the police? Why haven't you written disputes with the credit bureaus? Why haven't you set up fraud alerts with the bureaus? Why haven't you gone to the furniture company and proven they were defrauded? Did you bring a copy of your lease with valid ID to show the difference in signature on the furniture contracts?The court has to prove it was you, but if your roommate has done prior damage to your credit and you've done nothing to rectify it or have him arrested, this will just make you look even more guilty. If you've done things to prove the damage done and could show a history of him doing things like this, you may have a shot, but you HAVE TO go legal. The only thing that may save you is if you take action NOW and report this to the police. If you sit and do nothing, unless the furniture contract comes in written in crayon, you're screwed.If you do nothing, you're going to end up paying for the furniture off of your hard work and pay. Since you've done nothing to stop him, he will continue to do it until YOU can't get approved to walk accross the street. You've allowed him to screw you credit big time. You need to contact the police and a lawyer immediately.***EDIT - ANYONE who is advising you so wait to get the paperwork or to just settle shouldn't be listened to. You have been the victim of a very serious felony offense and settling your roommate's actions to ruin your credit will FORCE YOU to own the ruined credit for a minimum of the next 7 years***