Is It Possible to Be Sued For My Debts?

It is possible for creditors and third-party collection agencies to use legal means as a way to collect debts. The likelihood of being sued or having your wages garnished depends largely on the creditor that is owed money. It has been my experience that certain creditors are more prone to legal action than others.

Traditionally, creditors seek legal action only if there is a considerable lack of contact with regard to the account or if they feel that a consumer could simply be trying to escape their financial obligations. If the debtor currently earns a respectable salary, owns a home that has a sizable amount of equity, or can most likely afford to repay your current debts without the use of credit counseling, debt settlement, or bankruptcy, then there is a possibility that a judgment may be filed against you if begin to miss your monthly payments.

Additionally, for legal action to proceed, third-party creditors and collection agencies must retain the services of an attorney that is LICENSED in the state in which you live.

Even if legal action is pursued, a wage garnishment can take a considerable amount of time and depends upon your current employment. Many states have laws that stop creditors from being able to use wage garnishment as a means to collect debts.

Further, it is illegal for Debt Collectors to do any of the following:

Suggest that failure to pay your debts could result in arrest, jailtime, or wage garnishment

Contact consumers at their place of employment if they know the consumers employers prohibited such calls

Talk with third parties, including family, neighbors, children, and employers, for purposes other than acquiring location information about consumers, without consumers consent

Engaged a person in telephone conversations, repeatedly or continuously, with the intent to annoy, abuse, or harass a the person

Threaten to take action with regard to filing a lawsuit when they do not intend to do so

Call consumers at times or places that they know or should have known were not appropriate

Fail to inform consumers of their legal right to dispute and obtain validation of their debts, and to obtain the name of the original creditor

Continue to try to collect debts after consumers have formally disputed them in writing, and before verifying the debts

Use obscene or profane language with the intent to offend

If you wish to stop creditor harassment, you must also send a Cease and Desist letter to stop the communication.

Make sure you send it via certified mail with a return receipt request.

Alan Barnes
IAPDA Certified Debt Arbitrator
President and CEO of Debt Regret
http://www.debtregret.com

---

The ONE Law You Should Be Breaking

There is a law all smart people break.Parkinson's law.Parkinson's law... Read More

Going Bankrupt in the World

It all starts by defaulting on an obligation: Money owed... Read More

IVA Information

If you're thinking about an IVA, it is essential to... Read More

Take Careful Consideration Before Filing Bankruptcy

Filing bankruptcy is not fun! It is a last resort... Read More

Credit Repair? Its All Up to You

Log onto to a search engine such as google.com and... Read More

Eight Ways to Consolidate Debt

Next to winning the lottery, a debt consolidation loan is... Read More

Whatever You Do....Dont Save Money!

No, that's not a misprint. Even though falling interest rates... Read More

Free Quick and Easy Money Saving Tips ? Part 1

With the high cost of gasoline and the amount of... Read More

Repair Bad Credit Yourself

In March 2005, the U.S. financial services industry succeeded in... Read More

Your Ticket Out of Debt Relief

If you are in debt over your head and wondering... Read More

Your Secret Weapon... A Budget

For many, the word 'budget' immediately sends shivers down the... Read More

Credit Card Debt & the Unfairness of the Universal Default Clause

Let's look at a real world example: A woman purchased... Read More

Debt Collectors: Men or Mice?

Who are these people anyway? They viciously harass you and... Read More

Help for the Single Mother with Managing Credit and Debt

Today's consumers benefit drastically from the usefulness of credit. Credit... Read More

Debt Help and Advice for the UK

At some time or another during our lives most of... Read More

Is My Credit Card Debt A Problem?

For most Americans, credit card debt is a dangerous and... Read More

Budget the Luxuries First!

Strictly speaking, his advice was preceded by another Heinlein maxim... Read More

Credit Counseling ? Signs That You May Need Help

Credit counseling is a viable option for those who are... Read More

Start Small and Your Wealth Will Get Bigger

We've all heard the phrase, "You have to start somewhere."... Read More

How to Negotiate Debt Settlement

People over extend themselves financially as a result of a... Read More

What the Mail on Sunday Said

Anyone considering Bankruptcy may have experienced fear after reading an... Read More

Turning Bad Debts into Good Debts through Investing Fundamentals

If you've ever earned enough money to put some aside,... Read More

Free Quick and Easy Money Saving Tips ? Part 2

Although many consumers would argue differently saving money doesn't have... Read More

Individual Voluntary Arrangements- A New Alternative to Bankruptcy

This May, the Department of Trade and Industry in the... Read More

New Bankruptcy Law ? Where?s the Consumer Protection?

On April 20, 2005, President Bush signed into law the... Read More

Dealing with Thingitis

Debt is quickly becoming an epidemic in America. However, through... Read More

The Effects of Consumer Debt

Consumer Borrowing Consumer borrowing in the UK has now crashed... Read More

Debt Handling Solutions

Sometimes debt can seem overwhelming. In those instances, or even... Read More

Debt Relief with this Simple Formula

Is there a way to get out of debt without... Read More

Purchase Your Future Now While It Is Still Inexpensive

Leaving school, getting a new job, or even a raise... Read More

Assess Your Financial Attitude and Eliminate Your Debt Forever

Want to know if your attitude towards your finances is... Read More

The Last Debt Solution Should Be Bankruptcy

A debt solution like bankruptcy should really only be used... Read More

The Simple $10 Debt Elimination Solution

Ask a friend what resolutions they made for 2004 and... Read More