Will my creditor will sue me?

bankruptcyWill are the odds that my creditor will sue me?

It is possible to make an educated guess as to whether or not a particular creditor might sue you. To answer this question it is necessary to see if your creditor has waited too long to sue you, it cannot get blood from a stone, and if the amount you owe is too small to justify the expense involved suing you.

A creditor is not likely to sue you if it believes that the odds are low for actually recovering any monies from you:

  • You do not own any real property in your own name
  • You do not have a salaried job
  • You will quit your job it your creditor garnishes your wages
  • You live in New Brunswick
  • You live outside Canada
  • Your wages are currently being garnished because of child support or spousal support obligations

As a general rule, the more money you owe to a creditor the greater your creditor’s interest in suing. It costs money for a creditor to sue someone and it is simply not worth it for creditors to sue unpaid accounts for smaller amounts. Accordingly, few creditors will sue a consumer who owes them less than $2,500. Some creditors are much more aggressive than others when suing accounts where the outstanding balance is between $2,500 and $20,000.

Creditors have reputations when it comes to suing unpaid accounts. Canadian Tire sues a substantial percentage of unpaid accounts. MBNA has a reputation for suing a small percentage of overdue accounts.

Contact Rumanek & Company Ltd. for more information on bankruptcy and debt solutions. Or please fill out the free bankruptcy evaluation form. To learn more please visit our YouTube Channel. Rumanek & Company have been helping individuals and families overcome debt for more than 25 years.

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