Can a creditor sue if you are making partial payments?

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I took out an unsecured loan when I was making good money but I am earning thousands less. I explained to my creditor I can only afford $30/mth.They want $260/mth. I call when I am asked, answer their calls and continue to send in my $30/mth payments with a written explanation every month. Can I still be sued if I am making partial payments?

Can a creditor sue if you are making partial payments?

Unfortunately yes. If it wasn't the case, everyone would just get loans they couldn't pay for and send what they could if they weren't going to be liable. It would be nothing to stop someone who is making $6.75/hr and getting a new car with a 800 dollar/month note and just sending 40 dollars and saying "Thats all I got".

Whats even worse in your case is every time you make a partial payment, your statue of limitations starts from that day. Depending on what state you live in, the statue of limitations for someone to report negative information to your credit or sue you can range from 3-14 years. So from the date your last payment posted, they have either 3-14 years to collect from you (again, depending on the state).

Best thing for you do is find another person who can buy you out your loan with that creditor if they are unable to work with you and re-finance it. You may end up with a higher interest rate and more payments but, your monthly payment may be lower. In some cases, significantly.

Can a creditor sue if you are making partial payments?

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Can a creditor sue if you are making partial payments?

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