If You Stop Paying Your Credit Cards Can You Get Sued?

If You Stop Paying Your Credit Cards Can You Get Sued?
by: Joseph Hernandez

In the event that you quit paying your credit cards, it's possible, however highly improbable if you have a lot of unsecured debt(e.g. credit card, medical bills, collection/charge-offs).

Credit card companies as well as debt collectors connected with unsecured debt do have the right to carry out legal measures to collect an overdue debt.

On the other hand, it is a considerable risk to sue a debtor that has defaulted. As a result, nearly all collectors would certainly choose to settle, rather then prosecute. The price of suing is usually greater than the amount that the debtor owes the creditor. In addition, even if the debt collector wins a verdict in court, and the debtor possesses little or no assets, how can the debt collector collect?

For those who have a lot of Assets, Quit Paying Your Credit Cards Isn't Advised

If your debt collectors believe you own a significant amount of assets (e.g. cash, stocks and shares, bonds, equity in a property, etc.), they might pursue legal measures. Then again, if you do not have many assets, or a huge savings account, it is not likely that debt collectors will take legal action.

They might serve a debtor with a summons to show up in court, but that is often a scare tactic to get the debtor to pay the unpaid debt. Even if the debt collector follows through with the legal action, the debtor may negotiate a repayment plan or even a settlement deal with the lender before the trial date.

The Chance Creditors Have to take To Sue

When debt collectors exercise their option to file a claim, here is the procedure they commonly adhere to:

1. Conduct an asset inspection. This is an inquiry that ascertains the approximate value of a debtor's assets.

2. Employ an attorney to represent the debt collector.

3. Pay necessary court costs.

4. Receive a judgment from the courtroom.

5. Worry about the borrower trying to sell his/her assets and also emptying his/her bank accounts so as not to pay the judgment amount.

6. Even if the debt collector acquires a ruling, there isn't a guarantee that the creditors will actually get paid. You simply can't force someone to pay a past due debt if he does not have the available income.

As a result of to the above dangers, the majority of lenders would much rather settle than sue. They are like any other "for profit" organization. It's usually a lot more cost-effective for them to consent to a settlement deal.

Therefore, stop paying your credit cards may be a powerful strategy for those who are affected.

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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.

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