Re: self-serving stats

Posted by lawguy (216.30.212.58) on April 09, 2003 at 16:22:43:

In Reply to: self-serving stats posted by Linda-nator on April 08, 2003 at 18:04:03:

Actually, I know for a fact that some creditors purposefully wait in order to increase the debt owed, because post-judgment interest is not real high. I had one client, a bank, instruct me to wait on filing a suit on a loan and guaranty in order to let the interest accrue.

If creditors really wanted what they are due, they should sue and sue early. If a debtor can't be located, service can be done by publication. If the debts valid, and suit is brought quickly, then there would be little chance of losing such a suit. With a judgment in hand, the creditor can collect now, if possible, or 4,5,6, 10, or even more years later, when the debtor is in a more financially stable condition. Further, banks won't give a mortgage unless all outstanding judgments are paid, and nobody can sell a house with a judgment against it, providing further incentive to pay it off. And actually filing the suit is often enough incentive for the debtor to cough it up, or declare bankruptcy (which likely would occur anyways).

Not filing suits is purely for financial reasons, as it is far more efficient to pay you $13 an hour to yell at and threaten people than it is to pay me $150 an hour to get a judgment.

If you want to get the money, get a judgment.

If you can't get a judgment, hang up the phone.

Its realy pretty simple.

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