"If You Stop Paying Your Credit Cards Can You Get Sued?"
Should you stop paying your credit cards? it's feasible, but highly unlikely if you have plenty of unsecured personal debt(e.g. credit history card, healthcare bills, collection/charge-offs). Creditors and personal debt collectors of unsecured personal debt do possess a right to pursue legal action to gather an unpaid credit card debt.
However, it really is a huge danger to sue a debtor that has defaulted. For that reason, the vast majority of personal debt collectors would choose to settle, instead of sue. The cost of suing is normally much greater than the quantity that the borrower owes the lender. Besides, even when the credit card debt collector is awarded a judgment in court, and the debtor has little or no belongings, how can the debt collector collect?
If You have a Considerable Amount of Assets, Then Paying Your Credit Cards Is Recommended If your debt collectors believe that you hold a considerable amount of assets (e.g. cash, stocks, bonds, equity in a property, etc.), they may pursue legal action. Nonetheless, if you do not have many assets, or perhaps a big savings account, it's less likely that financial debt collectors will prosecute.
They might serve a borrower with a summons to appear in court, but that is normally a scare tactic in order to get the debtor to pay the past due debt. Even though the debt collector follows through with the legal action, the borrower may possibly negotiate a repayment schedule or a settlement with the creditor before the court date.
The Risk Lenders Need to Take To Sue If financial debt collectors exercise their option to sue, this is the method that they typically adhere to: 1. Perform an asset analysis. This is an inquiry that determines the approximate value of a debtor's belongings. 2. Hire an attorney to represent the debt collector. 3. Spend required court fees. 4. Receive a judgment from the courtroom. 5. Worry about the borrower trying to sell his/her belongings and emptying his/her bank accounts in order not to pay the judgment quantity. 6. Even though the debt collector obtains a judgment, there's no guarantee that the collectors will ever get paid. You can not force somebody to pay a delinquent financial debt if he does not have the money. Due to the above pitfalls, the huge majority of collectors would much rather settle than sue. They are like any other "for profit" enterprise. It's usually much more lucrative for them to accept a settlement offer. For that reason, stop paying out your credit cards may well be an efficient technique for those who are troubled.
About the Author
Debt Free Solutions is a financial consulting company that assists Americans across the U.S. to eliminate their credit card and other unsecured debt (e.g. medical bills, collection accounts).
We utilize various programs and strategies to assist them to get rid of their debt in the quickest, most efficient method possible. We also analyze the risk factor. We structure our programs to drastically minimize the risk that is inevitable with all debt elimination programs.
We offer our clients much more than a debt settlement company does. The vast majority of debt negotiation companies simply help you settle your debts with your creditors- nothing more.
On the other hand, we provide additional services to significantly help to minimize the risks that are involved with negotiating with your creditors.
First, we offer a free, no-risk 10 day trial service. If, for any reason, you are not completely satisfied, you simply walk away. No commitments. No contracts.
Next, we provide a comprehensive credit repair service to all our clients. This is a $795 service that is absolutely free!
Also, we offer free attorney consultation (a maximum of five sessions) in case one of our clients’ creditors files a lawsuit.
Last, we provide a written guarantee that our clients’ creditors will settle for an average of 50% or more for all of the debts they attempt to negotiate.
Our services are competitively priced- and include the above services!
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