Once financial distress hits, at some point, an individual must prioritize expenses, and the choices often are, pay rent, buy food, or pay creditors. Well, credit cards are the lowest priority expense and therefore you should stop paying on the cards if can no longer afford to do so. If bankruptcy is in your future, then paying credit cards is throwing good money after bad. However, inevitably, our minds turn to the consequences and worst case scenario, being sued. (more…)
Archive for the ‘Creditor Lawsuits’ Category
Once I Stop Paying Creditors, How Soon Will I Be Sued?
Friday, May 13th, 2011
May A Creditor Prosecute You Criminally For Fraud? (misstating income on credit application).
Thursday, February 17th, 2011Is it possible for a creditor to file a criminal complaint for fraud against a borrower, yes! Does it ever happen under normal circumstances, no? There is civil fraud and there is criminal fraud. The main difference is whether there is a clear intent to deceive (a criminal intent). When a creditor sues a borrower in civil court, there are several claims that creditor can bring; most of the time the claims are breach of contract (non payment of the debt) and unjust enrichment. However, if a creditor had a basis to claim civil fraud it could do so in the complaint along with the other claims. If the creditor wins a judgment, it is merely a civil judgment. (more…)
I Have Been Sued By My Credit Card; I Have Nothing; What Can I Do?
Saturday, August 28th, 2010Question:
I am being sued in civil court by Capital One for just over $5,000. I am on disability; I live in a rental home; and I make payments on my car. I have no savings or anything in my name. After all my bills are paid I have $227.00 a month to live on. What can I do?
Answer:
All states provide some sort of legal aid service where low income individuals (more…)
