Can a Creditor Sue Me For Unsecured Debt? Yes! So Take Steps to Avoid That

By John Hurley

You may be wondering “can a creditor sue me for unsecured debt?” The answer to that question is a resounding “yes.” Unfortunately, credit card companies and other debt holders can come back years later and try to get the money from you – plus compounded interest.

Creditors are more likely to sue you for secured debts. A secured debt is a loan that is made against a specific property. Mortgages and auto loans are two examples. The bank can foreclose on the home and repossess the car.

But, just because a loan is unsecured by property doesn’t mean that the lender won’t sue. In fact, if they get a Judgment against you, they can garnish your wages and take up to half of your paycheck. They can also get a lien or take your property including bank accounts, cars, and even real estate. So, in many ways, an unsecured debt becomes a secured one when the creditor gets a Judgment.

So, if you get paperwork in the mail saying that an unsecured creditor is suing you, you need to respond to it right away. If you fail to do so, they can get a default Judgment and proceed with the case without any input from you.

You should know that court proceedings are complicated and things happen very fast. Your case will probably get no more than 5 minutes on the Judge’s docket. And, if your papers aren’t in order, they will be thrown out.

That’s why you should consider retaining an experienced attorney if an unsecured creditor sues you.

So, the answer to “can a creditor sue me for unsecured debt” is yes. So, proceed with caution.

If you have fallen into the trap of easy credit, and found yourself over your head in debt, there is help! Go to http://www.helpfordebt.org to reach out to organizations that can assist you in reducing your debt – sometimes up to 50%. You will learn to make – and stick to – a budget and they will help to negotiate your credit card and other bills down.

You are not alone. Many other people who were in exactly the same circumstances as you are have found relief through the programs offered through http://www.helpfordebt.org

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