0
What happens when a Texas law firm informs you they are going to file suit for the credit card debt you owe and you cannot make the payments?
Velvetkitten33
All creditors have the option of retaining legal representation to file suit against a debtor for monies owed. Litigation is the last option that a creditor/collector chooses to take as it can be time consuming and expensive with no firm guarantee that the debt will be collected even when a judgment is awarded. Unfortunately, the court does not recognize the inability to pay one's debts regardless of the reason(s) as a viable defense. The best option for the debtor is to do everything possible to reach a settlement with the creditor as that is the only option the debtor has of avoiding a suit if the creditor wishes to pursue legal action.
Wiki User
∙ 15y ago
Add your answer:
Earn +20 pts
If you cannot make payments on your loan you?
... will lose your car and you will lose points from your credit score.
Should you make payments on some credit cards if you cannot on all cards?
yes.
What happens if you are in a credit counseling program and you cannot continue with payments due to slow job?
It would be best to meet with the person handling your account explain the problem and have the payment plan restructured.
Can you write off credit card wage garnishment payments on your taxes?
You cannot write off credit card wage garnishment payments on your taxes. It is best not to get into a situation where your wages are being garnished.
What happens if cosigner stops making payments?
The other signer must make the payments or the loan will go into default, the property will be taken and your credit will be ruined.
How can merchants process credit card payments in the event of a power failure?
Credit card payments cannot be processed in an event of a power failure. This is solely because the credit card payment requires a technical device which uses electricity. However alternative payments should be implemented as well as a power generator should be looked into.
What happens to my credit score after a loan modification?
My credit score is 606 at the moment,i just have my loan mod done and final. I'm making my payments ahead of time,How much my credit score can go up within a year of making payments on time. Thank you for your answer.
What happens when your credit card expires?
You cannot use it until you renew it.
What happens to your credit when you give your automobile back to the bank My car is broken down i cannot afford the payments nor the cost to have it fixed will is ruin my credit like a repo?
The car will be sold at auction and your debt will be reduced by the proceeds. If it is not enough to cover the balance due, you will still be expected to pay it off. It will be reported to the credit reporting agency as a voluntary repossession. Try to keep up your payments and pay off your debts, and you should be OK.
How much will cosigning a student loan lower your credit score?
Hi-Cosigning a loan will not lower your credit score unless payments are late, or if the borrower defaults and you cannot make the payments yourself. A cosigner is equally liable for the loan, so if you cannot make the payments, you should not sign.The way that cosigning will affect your credit report is in your debt-to-income ratio. The loan you cosign will show up as part of your debt, so a lender may not want to loan you more money if it looks like your debts are too high.Something that people often overlook though, is that cosigning a loan can actually improve your credit rating if the borrower makes his payments on time. You will get credit for making payments and paying off this debt as if it were your own.
If you co-sign a loan for someone and she makes all the payments on time will her credit rating improve?
Yes, it will improve her score, no matter who makes the payments on time, but you should be worried about what happens if SHE does not make the payments. The lender will expect YOU to make them.
How do you add if you can your apartment rent payments to your credit score?
Your landlord would have to report payments to the credit bureau.
