I have a friend that has back bills that she can't pay. she has more then 10 creditors none of them are credit cards. she has been sued 3 times but in all cases the court has refused to take action because she has been paying something every month. the rub is that is that the payments she is sending never amount to more then $5 a month.
Most of these bills are medical. a few are not. none of these payments are loan related in any way
lastly she has bad credit and doesn't care.
2006-09-19 07:13:33 · 4 answers · asked by Sam B 2 in Business & Finance ➔ Personal Finance
The court system is seeing someone making payments and a company that is accepting those payments. While they may be small payments, the courts may look at your friends financial situation and say " What are you suing for, her soul?" When a person is paying all they can, what can the courts do. The way the court sees it is she is making an effort even if it doesn't amount to much and the company has never refused any payment from your friend so there is no valid reason to sue.
2006-09-22 10:22:08 · answer #1 · answered by Anonymous · 0⤊ 0⤋
Its not that they can't sue you, its more that the courts don't want to take any actions because making any kinds of regular payments show that the borrower is in fact trying to pay back. The court might get involved to set up another type of payment schedule, but almost never side with the creditor for full payment
2006-09-19 14:23:31 · answer #2 · answered by yogurtsoju 3 · 0⤊ 0⤋
Creditors can sue you as much as they want until the bill is paid in full. The court system can agree/disagree to enter a judgement against you and make you pay in full, garnish your wages, or allow you to continue paying monthly as you have as long as you continue making the payments.
2006-09-19 14:22:30 · answer #3 · answered by Anonymous · 0⤊ 0⤋
im sure its the same as in the uk and its because she is making a contibution. i almost had to do the same, normally they wouldnt try to take her to court if she writes to them and says "look this is what i earn, and this is my essential living costs, this proves i can only pay u $5 per month and they normally settle for that. u can do it for as little as £1 here
2006-09-19 16:08:40 · answer #4 · answered by xrazberix 2 · 0⤊ 0⤋