Assuming the debt is valid, the creditor has a 100% right to file a lawsuit to collect the debt. Generally speaking, the risks of a creditor suing you for breach of contract to gain the right of a remedy for a debt vary with the size of the debt. A creditor owed $50 is unlikely to file a lawsuit because it makes little economic sense to do so. Conversely, a creditor owed $10,000 probably will.
However, as I have written previously, in my observation creditors do not always behave logically when pursuing debtors. Some creditors will sue debtors for account balances totaling less than $2,000, but ignore other creditors with account balances in the tens of thousands. Also, some creditors are more aggressive than others. Because of this, it is very difficult to come up with an exact formula for how any creditor will act in a specific case.
As I mentioned, assuming the debt is valid the creditor has the right to file a lawsuit to collect the debt. You can decrease the chance of the creditor filing a lawsuit against you, if you open negotiations now in an attempt to resolve the debt.
Today, you have choices to deal with the debt. Read What Are My Debt Resolution Options? to understand what you can do now. As time passes your options become more limited, so I urge you to pick a strategy, make your plan, and work the plan.
Just because an account is charged-off does not mean the creditor relinquishes the right to collect the debt. See Charge-Off & Credit Report to understand more about this accounting term and what it means to a debtor. You need to understand what can happen if you do nothing. Read Collections Advice to understand the costs of inactivity.
I hope this information helps you Find. Learn & Save.