15 Nov If I Pay What I Can Afford To Pay Each Month Can My Creditors Still Sue Me?
People ask me why file for bankruptcy when they are making payments to their creditors.
I get calls all the time from people who say they heard that as long as they are sending some kind of payment, that the lender can’t sue them. Unfortunately, that isn’t true.
Creditors can sue you if you don’t pay your debt as agreed.
A common myth is that creditors can’t sue you if you pay what you can afford, or you send a little bit to them. Not so.
Creditors are entitled to be paid according to the terms of the loan made to you. If you pay them less, they can apply that amount to the loan but still try to collect any balance owed.
Bankruptcy is one of the few ways you can force a creditor to leave you alone. The bankruptcy discharge ends legal liability for a debt forever.
Latest posts by Susanne Robicsek, North Carolina Bankruptcy Attorney (see all)
- New Bankruptcy Forms: Easier, Or More Problems? - January 20, 2016
- Forget about Bankruptcy - August 29, 2013
- After Chapter 7 Bankruptcy Discharge: Can You Take A 401k Loan? - March 13, 2013
- What Is A No Asset Bankruptcy Case? - February 13, 2013
- Bankruptcy Basics: When is Chapter 7 A Good Option? - January 13, 2013