I got a letter in the mail from a bank credit union threatening for file civil lawsuit if I do not pay. We have had an unexpected personal crisis and have not paid the personal loan for the last two months. The loan was always on time until things happen. The last finally total of this loan is 280.00. I know this is small. Can they file suit? I plan to pay, but not anytime soon due to this personal crisis. Please advise.
Of course they can file suit. If they do, then you can tack on their legal costs to it as well. Call and talk to them, explain what is going on and try to work it out. You don't want a judgment on your reports, especially one for such a small amount.
Can they sue right off the bat? Is there a process for this such as send to collection agency, etc. I know i will not be returning to work until the end of next month.
No, they can sue as soon as you default. Call them and talk to the person in charge of the loan department. Explain your situation and work it out. I don't want to sound harsh, but burying your head in the sand won't make it go away. Public records (jugments), especially recent ones will wreak havoc on your credit.
