Re: Arbitration

Posted by Drew (24.59.27.46) on January 01, 2004 at 18:05:16:

In Reply to: Re: Arbitration posted by Ray on January 01, 2004 at 16:31:02:

Ray I am not trying to be alarmist here. I am trying to be realistic. Earl basically told the lady she had very little to worry about. Things are not always that simple.

The creditors make their own individual decisions based on their policy and based on what they think that they will do.

It might be possible that the reason they didn't sue you was because you live in a state that is very hard and expensive to collect from. It is not always that way.

Creditors go after people based on whether they think that they have a shot of collecting or not. That decision is based on a multiple of factors: One, their income. Two, their assets. THree, their credit report and its state. Four, if they have filed bankruptcy before. FIve, the amount of the debt and how much it is going to cost them in legal fees, etc. and Six, the laws of the state that they live in and how they can collect and if they have the means of collecting.

You may have just been lucky but there are lots of folks out there who are not lucky and who do in fact get sued for $1000 or less. Their main question is will I be able to collect?

That is judged on a case by case basis. All people should be prepared for the worst case scenario because you don't know who is going to sue you or why they will or why they don't.

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