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 garnishmentContact consumers at their place of employment if they know the
consumers employers prohibited such callsTalk with third parties, including family, neighbors, children, and employers, for purposes other than acquiring location information about consumers, without consumers consentEngaged a person in telephone conversations, repeatedly or
continuously, with the intent to annoy, abuse, or harass a the personThreaten to take action with regard to filing a lawsuit when they do not intend to do soCall consumers at times or places that they know or should have known were not appropriateFail to inform consumers of their legal right to dispute and obtain validation of their debts, and to obtain the name of the original creditorContinue to try to collect debts after consumers have formally
disputed them in writing, and before verifying the debtsUse obscene or profane language with the intent to offendIf 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

Alan Barnes