If a debtor has made payment arrangements, can they still be sued by their creditor?
Get Legal Help Today
Compare Quotes From Top Companies and Save
Secured with SHA-256 Encryption
If a debtor has made payment arrangements, can they still be sued by their creditor?
I was behind on my homeowner’s association dues and my account was sent to their attorney’s. However I made payment arrangements with them and was making payments. They decided to give me a summons. I had 30 days to respond but was dealing with the attorney’s office to find out why I was summoned when I was under a payment agreement. I have been going back and forth with them and being given conflicting reasons. They claim that I was late with my last payment, which is incorrect since I have proof of when my checks werecashed. Then they changed it and said it was the previous month’s payment that was late.
Asked on September 26, 2011 under Bankruptcy Law, Georgia
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 12 years ago | Contributor
If the creditor has voluntarily agreed to the payment arrangements or schedules, then as long as the debtor is honoring his/her obligations under the plan (e.g. making the payments on time), the creditor may not sue the debtor or take other obligations. Note that the debtor may not unilaterally impose a payment plan--i.e. the creditor has to actually assent or agree to it--but if the creditor does so agree, then it is bound to the terms of its agreement.
As a practical matter, assuming the agreement was mutually agreed to and its terms are unambigous, in the event of a dispute, the significant issue will be the evidence that each side can bring to the table, that it complied with the agreement and/or that the other party did not.
IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.