After being laid off I have defaulted on a credit card to make ends meet and keep my house. I was plagued with creditor calls and now received a letter from a law firm representing the credit card company. What will they do? The law firm is based in NY and I am in TX, are they going to sue or what? I am confused and scared...

Thanks for any help.

No one but the collection company/law firm knows if they are going to sue or not. My suspicion is that they are.

They will sue and attempt to obtain a Judgment against you, which Judgment they will enforce according to Texas law. It also, of course, goes on your credit report. Unfortunately, inability to pay is not a defense.

If you can make partial payments or, even better, one payment for say 40% of what you owe, they may very well go away - but they will want a lump sum payment.