How to Avoid Being Sued When You Owe A Debt

Logically, the best way to prevent being sued is to pay the debt. But what if you don’t have the money to pay it? Or what if you don’t owe what they are alleging you do? If you do nothing, your creditors could sue you. Here are a few suggestions on how to prevent a law suit.

Difficulty: Moderately Easy

Instructions

1. As soon as you realize that you cannot make the next payment or the next few payments, notify the creditor right away. Open communication often finds favor with the debtor, so talk to them and try to arrange a temporary delay in payments.

2. If you are struggling with the amount of the payments because they are too high, call your creditor, explain your situation and try to arrange a lower amount to pay each month.

3. If you are already delinquent with the debt payments, then call the creditor and set up a new or temporary payment schedule.

4. Don’t avoid the creditors when they call you on the phone or send you letters. Instead, talk to them. Keep the communication open.

5. If you don’t owe what they are alleging, you need to go to the courthouse and speak to the court office clerk about setting up a time of mediation so that you and the other party can both bring all your documents before the mediator and let them decide what is owed and by whom. They will also set up a payment schedule for you.

6. If you have any concerns about the allegations or if the creditor refuses to acknowledge low monthly payments, you can get the name of lawyers from the courthouse, who will give you a few minutes of free counsel and you can get the legal advice you need on how to proceed.

Tips & Warnings

• Always be honest with the creditor. Regardless of how they are with you, keep your dignity. If you need to, ask to speak with their supervisor or get the name of the supervisor so you can call them directly. Collection agencies have trained agents who know that no arrangement for payment means no money for them, and that even a small payment means they are still getting what’s owed to them.
• Some agents just like to bully you before they get reasonable, so don’t let their words intimidate you or demean your character. If you can’t make an arrangement with even the supervisor, seek legal advice.

[dlcass]

on 12/9/2008 Very good advice. Communication is so important.