While this may be more of a guess, the size of the creditor may help you determine your likelihood of getting sued. For example, if they have many cases of filing a lawsuit against a creditor that owed over $5,000, but no lawsuits for anything less than that, you may be able to get away with debt settlement if you owe under the $5,000 amount.
You may also be able to tell what debt limit they tend to sue for. If you see that the creditor has a history of suing whenever an account goes into default, you can probably bet that they will also sue you if your account goes into default. You should be able to look into the creditor’s legal history to find out if they have a penchant for suing debtors who utilize debt relief programs. Here are just a few things to look for: Creditor’s History While there is no way to guarantee that a creditor won’t sue, there are a few things you can look for to better determine the likelihood of a lawsuit. But with the prevalence of money lenders and the number of variables at play in each case, there is no way any debt settlement company can be certain that a creditor either will or won’t sue. In a perfect world, a debt settlement company should be able to tell you which creditors will and won’t sue. Shouldn’t a Debt Settlement Company Know Who Sues and Who Doesn’t Sue?
Freedom debt relief lawsuit 2019 full#
While this isn’t a full breakdown of what the lawsuit process looks like, it is a quick overview of what it looks like to get sued by a creditor. Once the court rules in the creditor’s favor, you will be required by law to pay in full what you owed. In many cases, if the debtor is taken to court, the judge will rule in favor of the creditor, unless there have been illegal or unethical practices on their part. In some cases, a creditor will opt to file a lawsuit against the individual instead of engaging in negotiations. After a certain amount of missed payments, the goal is that your creditor would be more willing to accept a smaller payment over no payment at all. Specifically, if you have begun the debt settlement process, the first thing you do is stop paying your creditors. So, when someone files for debt relief, they do have one more option that can protect them from losing money: a lawsuit. Obviously, this isn’t ideal for creditors. When this happens, creditors not only lose out on their projected interest income, they also have to eat the money they loaned out. Many debt relief programs, like debt settlement and bankruptcy, end with the individual only having to pay back a portion of what they owe before having the rest forgiven. In most cases, when an individual begins seeking out debt relief, this only means one thing for the creditors: a potential monetary loss. The goal of all creditors is to be repaid in full and then some (with interest payments) when they loan out money. Why Do You Get Sued By A Creditor?ĭebt collectors often sue when it has not yet recovered funds from other collection activities. While debt relief programs have provided relief to thousands of families each year, there are often potential consequences that companies keep hidden until it’s too late. Whether you have enrolled in a debt settlement program, have begun filing for bankruptcy, or have begun another debt relief journey that stops you from having to pay your full debt amount, there is one major potential risk that you need to keep in mind: the risk of getting sued by a creditor. For many Americans facing overwhelming amounts of debt, debt relief programs have been a saving grace - moving them from a place of financial uncertainty to financial stability.
0 kommentar(er)
