How canI stop a creditor from proceeding with a lawsuit?
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How canI stop a creditor from proceeding with a lawsuit?
A credit card company is trying to place judgement against me even though we are working out hardship payment plan.
Asked on November 9, 2010 under Bankruptcy Law, Virginia
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 14 years ago | Contributor
Short of paying them, there is no way to stop them. Assuming the debt is valid, a creditor has no obligation to work with a debtor, provide a payment plan, give him extra time to pay or discount debts or amounts owed, etc. All of that is purely voluntary. A creditor has a legal right to insist on payment in full when due. Therefore, once a debtor defaults, the creditor may take legal action. It may even proceed with legal action at the same time that they are speaking to the debtor about a payment plan. Once a plan is worked out--if one is worked out--and reduced to writing, if the debtor honors his or her obligations under it, the plan is then enforceable as a contract; until that point though, the creditor can proceed to get a judgent at the same time it is talking to the debtor.
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