When does a company sue?

Anonymous · ‎02-07-2011

I just had several cards go into collections (Nov/Dec 2010) due to not paying them because of medical bills and financial stuff. We almost lost our house to foreclosure. We got on a repayment plan for that. I am sending out 4 PFD letters to the collections agents for some small cards. Waiting for a settlement offer on a couple of others. My big cards have a repayment plan with the OC. I have 2 or 3 that I am worried about. How long does it usually take them to sue. I am desparately worried that they will. I have looked into bankruptcy and will use that as the last option. I don't think we qualify for chapter 7. We will probably qualify for chapter 13. If I had to go that route, I want to get our house out of the repayment plan (April). I am trying to work with the creditors but it is literally making me ill. I am just wondering if they sue immediately. Do they wait a while?

Anonymous · ‎02-07-2011

No, they wait a long time if they ever sue at all. Expect the CA to hold the account for at least a year or two. This is in MOST cases, but I'm sure there are exceptions.

Anonymous · ‎02-07-2011

Thank you. My goal is to get them all paid off. I was worried that they sue immediately. I don't exactly have 5k or 7k to pay it off right now. The little cards I can handle and do settlements. It was just a couple of the big cards that I was desparately worried about!

MBOhio2 · ‎02-07-2011

Before we were married and when he was very young, my husband destroyed his credit and defaulted on a bunch of credit cards (15 years ago). None of those creditors ever sued and recently, he paid off a handful of old credit card balances just to be over it because he didn't want it to ever come back and haunt him. So in his experience, for smaller credit card balances, they likely will never sue - litigation is expensive and generally not worth their time for a small collection amount.

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Anonymous · ‎02-07-2011

Thank you both for replying and giving me some relief. As the months go by, we will have more disposable income to pay everything off. The phone calls go to our house cell phone and I just set that to vibrate. My car will be paid off in 22 mos. My husband's car will be paid off in 25 months. Our youngest will be out of daycare (to the tune of $700 a month) in 3 years. The cars I just got current this month. It's just the unsecured debt like credit cards that are not. I figure house, cars, utilities, and daycare are the priorities. Then cards that have not charged off that are on a payment plan of reduced interest. Then whatever is left goes to pay off the collections/charged off cards. After the basics and the not charged off cards, there is about $1000 left per month to pay collections.

RobertEG · ‎02-07-2011

A creditor can legally sue the day after you first go delinquent. That brings about a cause of action.

Most will first go through the normal credit reporting and collection referral actions before going through the hastle and expense of bringing legal action, but it is a remedy availble to them once the account is in arrears.

Anonymous · ‎02-07-2011

One more thing I would add to this...

Make sure you communicate with the Collection Agencies. Answer their calls, call them back, whatever. Just tell them that you are currently not in the position to settle or make payment. If you ignore them for too long, that will trigger a law suit for sure.

MarineVietVet · ‎02-07-2011

@Anonymous wrote:
One more thing I would add to this...

Make sure you communicate with the Collection Agencies. Answer their calls, call them back, whatever. Just tell them that you are currently not in the position to settle or make payment. If you ignore them for too long, that will trigger a law suit for sure.

I think you'll find the overwhelming opinion on these forums is that it's almost never a good idea to talk to CA over the phone. Keep communications in writing only. Not talking to them on the phone is better for your peace of mind and your blood pressure.

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