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Will debt collectors sue over a $3,000 credit card debt?
When debts accumulate and go unpaid, it can be tempting to ignore them and hope they eventually disappear. After all, if the debt is old enough, it will no longer impact your credit score directly. Plus, dealing with debt collectors can be overwhelming, especially if your finances are tight. So, for some, the idea of letting an old debt “age out” and lose its credit impact might seem like an easy solution. However, leaving a debt unpaid doesn’t necessarily mean it’s gone. Debt collectors can continue their collection efforts to try and recover what’s owed.
Any delinquent debts you owe can eventually lead to significant repercussions if left unpaid. Collection agencies are free to try and collect on them using tactics like phone calls, letters and even lawsuits, and ignoring their efforts can escalate the situation. If a debt collector decides to file a lawsuit, for example, and the court rules in their favor, a judgment can be issued against you. This could allow the debt collector to garnish your wages or place a lien on certain assets.
But what about smaller debts? For example, will a debt collector sue over a $3,000 credit card debt? Below, we’ll explain what you should know.
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Will debt collectors sue over a $3,000 credit card debt?
While smaller debts are less likely to result in legal action, there are no guarantees. In many cases, though, debt collectors will prioritize larger debts, as they offer a higher return on the time and legal fees associated with a lawsuit.
That said, a $3,000 debt is not insignificant, and depending on the statute of limitations in your state, the debt collector’s policies and the age of the debt, legal action is possible. Here’s why:
- The cost-effective legal processes: Many collection agencies have streamlined their legal procedures and maintain relationships with law firms that handle cases in bulk, reducing the per-case cost of litigation.
- The ability to secure default judgments: Most consumers don’t respond to debt collection lawsuits, leading to default judgments that make it relatively inexpensive for debt collectors to obtain a legally enforceable verdict.
- The long-term returns: Once a judgment is obtained, debt collectors typically have a decade or more (depending on the state) to attempt collection, making even smaller debts worthwhile to pursue.
- The additional costs: By the time a lawsuit is filed, the original $3,000 debt may have grown significantly due to interest, late fees, and legal costs — all of which you could be liable for if the debt collector wins the case.
However, the likelihood of a lawsuit also depends on the collection agency’s practices and the type of debt involved. Some agencies pursue legal action more frequently than others, and credit card debt, in particular, is a common target for lawsuits due to the relatively straightforward nature of the claim.
So, if a debt collector sees a chance of winning the case and obtaining a judgment against you, they may decide it’s worth the effort to sue. And, if the debt is relatively new and within the statute of limitations, debt collectors are typically more likely to consider legal action. It’s also worth noting that a lawsuit is more likely if you live in a state with consumer-friendly collection laws. Some states place strict limits on collection efforts, but others allow aggressive tactics.
Regardless of these factors, it’s generally best to address a debt before it reaches the point of litigation. After all, unpaid credit card debt of any size can still have consequences, including compounding interest and fees, which will make it harder to resolve the debt in the future.
Start tackling your expensive credit card debt now.
What debt relief options do I have?
If you’re concerned about the possibility of being sued over credit card debt, there are several debt relief options to explore, including:
- Debt consolidation: Consolidating your debt involves combining multiple debts into a single loan, often with a lower interest rate, making it easier to manage payments.
- Debt management: Pursuing a debt management plan could lead to reduced interest rates and waivers on late fees, lowering the cost of your debt.
- Debt settlement: With debt settlement, the goal is to negotiate with your creditors to settle the debt for less than the original amount owed, which can be a useful solution if you’re struggling to pay off the debt in full.
- Bankruptcy: A Chapter 7 or Chapter 13 bankruptcy can discharge or restructure debts, which can protect you from further legal action by creditors.
The bottom line
While debt collectors may not automatically sue over a $3,000 credit card debt, they have the right to pursue legal action if they believe it’s a viable option. Ignoring a debt in collections may seem like an easy way out, but it can lead to lawsuits, judgments and other consequences that can make your financial situation even more challenging. Luckily, there are debt relief options that can help you avoid the stress of litigation and find a manageable solution for your credit card debt.
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Missouri flash flooding kills 5, including 2 poll workers
A couple in their 70s who served as election poll workers were among at least five people killed in Missouri after torrential rains caused flash flooding across the state.
Up to 8 inches of rain fell over two days in parts of Missouri, leading to widespread flooding and dozens of water rescues. It was part of a storm system that also spawned tornadoes in Oklahoma and Arkansas.
In Wright County, Missouri, a county of about 19,000 residents 210 miles southeast of Kansas City, a 70-year-old man and 73-year-old woman were in a vehicle swept away by flooding at Beaver Creek around 4:30 a.m. Tuesday, the state patrol said. The bodies of the couple from Manes, Missouri, were found more than four hours later.
Wright County Clerk Loni Pedersen confirmed that both of the people who died were poll workers.
“This is a tragic loss for Wright County,” Pedersen said in an email. “They were dedicated citizens who valued fair and honest elections.”
Three people in two other cars swept away by the fast-rising creek were able to swim to safety, the patrol said.
Two other deaths were reported in St. Louis County. Firefighters were called Tuesday morning after a submerged SUV was spotted near flooded Gravois Creek, near Interstate 55. Crews broke through the sunroof and pulled out a woman, who was pronounced dead, Lemay Fire Protection District spokesperson Jason Brice said.
Hours later, a man’s body was found in the same flooded creek, Brice said. Authorities were investigating how the body got there. Fire crews rescued 10 other people from flooded vehicles, Brice said.
On Monday, Missouri state troopers recovered a 66-year-old man’s body after a car was swept off a bridge in Ironton, about 90 miles (145 kilometers) south of St. Louis.
The National Weather Service said four likely tornadoes, and possibly more, touched down in parts of Oklahoma and Arkansas on Monday. There were no reports of deaths or injuries from the tornadoes.
Keli Cain, spokesperson for the Oklahoma Department of Emergency Management, said assessments of the damage were underway.
The storms struck a day after tornadoes injured at least 11 people in the Oklahoma City area in central Oklahoma.
Cain said the department worked with the Oklahoma State Election Board to ensure that polling places were not disrupted.
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