Creditor Gave Up!

[magua2]

Here's a little inspiration for all of you doing your best to avoid bankruptcy and willing to battle your creditors in court. My business leased equipment and I was the co-signer. My business tanked, I couldn't pay the lease and the creditor repossessed my equipment which forced me to close the doors. The creditor sued me for the amount left on the lease.

I fought it in court but ultimately lost because, after all, I had guaranteed the debt. But each day you are in court, the creditor is spending huge sums of money on its own attorney's fees. All the creditor had to do in order to finalize the judgment was show up one last time with evidence that it had sold the equipment it had repossessed for fair market value. The week before the hearing the creditor dropped the suit!

Perhaps the managers realized that they were going to spend another couple grand on attorney's fees and still get nothing in the end, and decided to cut their losses. Perhaps they kept sloppy records and knew they did not sell the equipment at FMV. Whatever the reason, the case was voluntarily dismissed by the creditor. Within a week the creditor had started all over and assigned the debt to a rather aggressive collection agency. However they are back at square one, they have no judgment, and we are completely immune from phone calls at this point so let them call all they want.

[runner4life]

Nice. Sometimes though they can collect attorney's fees if the Judge find you prolonged the proceedings on purpose.

[royalking]

It is a very difficult situation for you. First you have to save yourself from the court.

[billy99]

It is important to realize and remember that you are always doing the best that you can do. If you had the ability to pay the loans you would pay the loans, but these companies cannot get blood from a stone. It can be horrible to have them constantly ringing the phone to try and intimidate you one more time into paying, but the truth is that they are just words. They can't take your birthday away, and they can't remove your right to work, earn, and provide for your family. You will do what you can, and you can't do anything more. Let the phone ring, that is why we invented answering machines and voicemail.