Why will they sue me?

I am trying to understand why banks sue. Or is it more likely the collection agency will sue?

I have very very high debt balances on my business. Because the banks are yanking my lines away, unfortunately, instead of paying them off, I am forced to keep the money so I can continue to run my business.

If someone were to sue me, what should I expect in court? I 'll just explain to the judge that my business hit hard times, I have no money, and its unsecured debt anyway. Isn't that definition of unsecured debt? Isnt that the risk the bank takes? wont my account be sold to a junk debt collector?

Is the judge likely to turn unsecured debt into secured debt? That would not make sense, but I am trying to figure it all out.

Banks sue as a means to compel payment. In other words, you're not paying them willingly and so they use the court to force you to pay.

Depending on several factors (bank policies, balance, overall collectibility), they may file suit themselves, or they may sell the debt to a CA who then may or may not sue.

A "judgment" really is just a way of saying that a judge (or jury) reviewed the evidence, and (in the case of a breech of contract complaint), a preponderence of the evidence showed that $XXXX is owed to the plaintiff. Whetever events led to the breech of contract (ie hard times/can't pay) really are irrelevant, not to be mean. What matters in court is: (1) did a contract exist; and (2) Was there a breech of contract? If the answer to both questions is yes, then the plaintiff will get a judgment.

When a judgment is entered the creditor may agree to, or a judge may accept and enter an agreed payment order, whereby you make monthly payments against that judgment balance. If you do not make or keep such arrangements, then the creditor can take further steps to "enforce" that judgment. If you signed personal guarantees for those loans, then the creditor/bank may be able to put a lien on your house or other property you own, or garnish your wages; or if your business has assets (property/plant/equipment, checking accounts, etc), then the creditor can file to attach those assets.

In essence before a judgment is entered, you're correct, it is just unsecured debt. After judgment, however, the creditor may use supplementary proceedings to take/sell your property to satisfy the debt.

Thanks moderator, that helps.. but strategically, I still do not see why a bank would invest money in suing especially in this market. Suing someone is no small feat, I know, because I've done it. You have to chase them down, get them served, etc.. And then if you do make it court, fine, but if you have no income, then what! If you have no assets, then what! There are a lot of people in the nothing category, and it seems to me trying to squeeze blood out of a rock is expensive and stupid.

BTW, I've never ever been late on a bill ever.. But because of the economic environment, that banks are treating me like I do not pay my bills. The second I used a credit card, it gets blocked. When I call as to why, they illegally pull my credit and make up some excuse about me having enough credit already.

Then, the infamous Advanta, jacked up my 2% interest rate to 40%, and then it went back down to 2% at least for now, and the line has been cut off.

I made a $25,000 to Wells Fargo, and they took the payment and closed my lines. And now, they call me BEFORE the payment is even due asking me when I plan on making that payment!!

So here is my point. They are already treated me as if I already defaulted. It seems to me that THEY are the desperate ones, not me. I have property, but the banks would have to get in line and take a tertiary position, so again it does not make any sense.

I think if I stop paying my bills, common sense dictates that my account will be charged off, and then sold to some scum bag junk dealer, who will violate all kinds of laws. I will ignore them, until they finally sue me somehow. I explain to the judge how I have nothing, but I am working on building back up my business from ruin, right after I find an investor that is willing to give me the money to do it. So what is the judge to do in this situation? I have nothing.. It just does not make sense for the Banks to sue for THEIR mistakes. Thats what this is all about. THEY made a mistake and they are trying to pass the buck. Doesn't work when everyone is broke.

Explaining to a judge that you have nothing will not stop a judgment. The fact that you have nothing now doesnt mean that you wont have something 5-10 years from now....things change.

How has the bank made a mistake? They loan money and per your agreement they have every right to cancel your credit line at their discretion.

They sue so they can get a judgment and an execution (lien) against any property you own, if you own any. That at least seems to be what they are doing where I am.

Thanks Soap Lady... So is that the mentality of the judges? To sue for what you may possibly have 5 - 10 years from now? Sounds horrendously illogical. My ex husband, has childrend, biological children, and no judges, across 4 states, seem to provide an judgements to make him pay.. And this is not unsecured debt. ... These are his children..

I think you are giving the judges more power than they actually exercise, or please, educate me. Do they really put judgements in place where you may magically be a millionaire some day, and then sue?

The mistake, that was made by the credit card companies, is passing the buck along to the good people, like me, that make their payments. My credit is flawless. It is usury to change the interest rate from 2% to 50% because OTHER people defaulted, and they KNOW they will not get any blood out of them... That is the mistake.. Why did they lend to those people and PUNISH me?

Bank of America, made the mistake of buying up all the other banks, and taking the other bnaks assets at fair value.. They made the mistake, because people had accounts at multiple banks, and NOW they are at risk... because person one, now has 7 accounts with Bank of America!! They ridiculously reduces the value, and they made the mistake of paying for that account!

Now, Bank of America, is labeling everyone as someone who is in default, when in reality, that is not the case. so when someone uses a credit card, they are immediate thought ot have a debt problem, they illegally pull credit, they change the contract terms drastically from what was originally written, and I am the bad guy?

That is the thing... I did not sign these contracts. The original contract I signed, (before Bank of America, or the crisis) were entirely different.

Word on the street, bank of america, (and a lot of others) are forgoing suing people becuase its stupid and a losing battle. THEY messed up... in a magnitude proportion ,and suing people just in the case the judge wants to put a lien on my for 10 years to come, is just not a smart business plan.

the more and more I research this, the more and more I beleive I have the upper hand. I mean, calm on, calling before a payment is even due!!! If I ever treated my clients like this, I would have my licenses taken away.

i was lucky enough to have a few that just disappeared into the woodworks and now im thinking that the statue of limitations is up on them so i managed to dodge that bullet. but then again i did get sued on a very very small account one that i figured would have settled quickly scince it was so small. believe me they do sue. and i had nothing at the time. i explained my situation and the judge put a lein on my home forever till the debt was paid with no time limit. so in the end i would have had to pay them before i could do anything with my home.

and when it comes to account %s and limits reduced, and lines canceled we are all in the same boat. its happening to everyone right now. stinks but i have been on good behavior for well around 5 years now and they still treat me like a criminal. so i wouldnt take it too personally

Thanks for explaining everything. so the judge put a lien on your home? So that means that you could not sell it or anything? Or that the lien would have to be satisfied before the house could be sold. OK I got it. Thats probably what will happen to me. So I will have to worry about paying it off, when I sell the home, in the event that I get sued.

I do not think the banks will sue, but I think the collection agencies will. I guess it depends on the agency. For the most part so many of them out there are such criminals, and they violate so many laws, (that are EXPENSIVE!!!) at least I can make the most of getting sued by counter suing.

Bank of America has illegally pulled my credit so many times, at this point, if I sued them, they'd owe me $20,000.

Yeah, you are right, I will try not to take this stuff too personally, but its hard being harrassed and then you did not even do anything. Thats the thing. I have not missed a payment, (at least yet) But how the banks are acting, its like they are forcing people to default.

I do not have a problem with the fact that Bank of America pulled my lines. I have a problem with the convoluted way they did it, by jerking me around, lying, illegally pulling my credit, and then charging all sorts of illegal fees, and then I have to spend a whole day getting it resolved when I did nothing wrong!

If you are going to pull a line, pull the line..

But that is not what they did. I called in to check my avaliable balance, and they said I had so and so available. I go to use the check. The check bounces, return to maker, they charge a $39 fee. I call to ask why the check bounced, and they said, that they did a review of my account that day I called, and decided to close the line. Well if that was the case, why did n't they tell me that? They also did not have my authorization to pull credit. They then charged me another fee, on the credit card for the bounced check, and then again on the bank account. I talked 12 people before I got a straight answer and got the issue resolved, during my work time!!!!!

then, I get some stupid letter in the mail, about if I am having trouble paying my bills, to call them. (I've never been late) and then I call the number for kicks, and its a non working number..

If you ask me, they begging people to default. You do not harrass your customers that are paying on time.

The other thing I would like to add, is that I think things have changed as of this year. Collection agencies are going under, because they can not collect on anything, from what I am reading. Also, when they sue, how in the world do they make money? They have to serve you, and then go to court. Yeah, they can charge you for the court costs, but then all the judge does is put a lien on you. That does not translate into money for them. so how do collection agencies possibly make any money if they are going around spending money on suing people that do not have anything?

OK, I am finding out more information on this. I guess the difference between getting sued or not is finding out if you are dealing with a collection agency law firm, or just a collection agency. It seems to me if you are dealing with a collection agency law firm, then, you should be able to look up their firm on the state boards of professional regulation, right?

I did not default by choice. I have had a lot of things happen to me in the last couple of years. I never planned on not paying my bills. People fall on hard times and circumstances they never planned on. I am sick of people who judge those who default. Not all of us are deadbeats.

Did I come across as judging those that actually default? No, that is not where my beef is. Things happen, and that is life. My point is, I am being harrassed for something I did not do. I can not work, because I have Wells and Bank of America calling me harrassing me before payment is even DUE!! I have to take off work, and this affects the money I make, because they charged me fees because they beleive, because of the market, that I will DEFAULT, so I have to go in there an argue and talk to several people. Thats my beef.

I am so upset, and sick of being harassed, I am finding out my rights, and I am going to sue them. Definitely Bank of America for illegally pulling my credit. And I am going to earn back the money I lost by arguing with them.

I've actually decided that because of what the banks have put me through, now I am forced to default, and I am strategizing how I am going to do it. I think I am going to let everything go to the collection agencies, and then, hire an attorney to take care of it. Since 90% of the collection agencies engage in illegal practices anyway, according the attorney, I can get the case dismissed.

I hate doing this, but the banks backed me into a corner. So I am forced to act like a criminal, since they are treating me like one. Which is so stupid, because now they are going to end up with nothing.

I am going to take my chances and if a collection agency sues me, I will deal with it then.

Kristi, I posted an apology as I did not mean to offend. that post magically disappeared. Again, I did not mean to offend anyone who has defaulted. My only issue is that now Banks are treating EVERYONE as if they are defaulters and its costing those that did not default, time, expense, and harrassment. I am being harrassed and have done nothing wrong.

I will repeat what I said before, because the post will probably get deleted again.. I'll re word it.

Lets just say, that the debt collectors and junk collectors, etc.. mess things up so bad by their processes, that when they run into someone who knows their rights, they end up losing, and owing US!

I guess that is why the banks are acting the way they are. They know where the real power lies, its with the customers.

i understand your fustration now imagine if you actually were late how they would treat you then i have been on that other end and frankly had i known anybetter i discover card would have been paying me instead of the other way around. But we live and learn and that is why this site is here so that people can know thier rights and howto go about dealing with their debts

If its anything that I have learned throughout this whole horrible ordeal, and I am just an innocent bystander, at least right now, is that, if you do not have the money, then do not pay a dime. Its been my experience that when bullying tactics insue, the other party is the that is at its weakest.

So I say, spend money on your family, take care of yourself, and let these banks and their debt collectors rot in hell.

And then get educated and learn how to answer a summons, make them come up with proof, etc. everything that typical criminals do when they commit a crime and then pretend they did not do anything..

I do not care if people here defaulted or, are the victims of the banks wrong doings, but I say fight fight fight.. Because that is not the norm. and educated people is not something they are accustomed to.

Just like a criminal that picks their target, they always pick the weak ones.. If you are on this board, you are far from weak but seeking information that will indefinitely help.

I recived a summons this morning and have been stressing soo much. I been on every forum can think of trying to find out imformation and to what i can do. I have been sued by a collection agency law firm and a payment that i defaulted on. I'm so confused and dont know what to do. There is no court date on the summons but there is a case number. Help please