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Debt Amount and Small Claims Courts

April 18, 2012 | Comments: 0 | Views: 155

One of the possible scenarios that may bother you much is when people from the lending firm would just appear on your doorstep. You may hesitate to open the door because you are afraid that the moment that you do, they would step inside and start getting some of your stuffs. The reason: you have not kept your side of the deal, which is to pay your debts on schedule. Because of this, you may have to find out whether there is a specific amount of debt that you must incur before the lending firm could actually start getting things of value in your place.

It would be necessary to know whether such actions taken by the lending firm can be considered legal or not. The fact that the act seems arbitrary enough should really prompt you to learn about this. Here is what you should not forget. The act could be similar to a warrant search at home. This means that if the lending firm starts getting your things without any the approval from any small claims court, the action may indeed be illegal. If you find out that it is legal, you have the right to sue them. However, the fact that you have not been able to repay your debts on time certainly means that you taking your creditor to court may not be such a financially wise idea.

Creditors could only send their men to the debtors' homes to retrieve items of value for safekeeping until the debts are paid if they manage to get a court order. If there is no court order, doing so would be illegal. Because of this setup, it may actually take time before such actions could actually be made. This means that you could still enjoy having your valuables in your home without fear of losing these.

However, you must realize that such relief would only be temporary. The lending firm would never get tired of seeking ways to pressure you into paying. In fact, it would certainly be able to avail of a court order.

When it does, you would not be able to do anything about it but to grudgingly let the guys from the lending firm and watch them take away your LCD or LED TV if it has almost the same value as your unpaid debt. Of course, if your debt's value is higher that your 42-inch source of entertainment, you may as well say goodbye to your DVD player or even your sound system.

If you do not want to spend your evenings staring on where a TV used to be, you should do something to prevent this from happening. Before the creditors could take a step further by going to the small claims court, you should write a letter stating clearly your intention to pay but in terms that you are capable of. Once the creditor is assured that you are not going to renege on your promise, it may not go through hassle of getting a court order.

Jim Oneil is a writer with a special interest in debt issues and personal finance. He has written for small local newspapers in the past and now devotes part of his time writing about debt consolidation and management and also UK based financial products.

Source: EzineArticles
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