Will are the odds that my creditor will sue me?
Will 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.
