What is the smallest amount of money a collector will sue for?

[debee]

When you are in a state that they can't garnish your wages is there a way to protect your bank account BEFORE they try to get it.

Some people on this forum have used check cashing services like Walmart. The fees are low ($3 or $6).

[IBroke]

Well, what I'm posting now is based on my own experience:

My mother and I are basically are "twins" when it comes to our financial situation. We used to share the same employer, income, debt and even creditors. However, there is a little (but I guess important) difference. When my finances collapsed, I couldn't hold on to my house. Fortunately, my mother could. My credit report reflects a foreclosure, her's reflects a homeownership. I only got hit by 1 judgement - my mother got hit by 6. So I guess creditors also check if you have any fincial "potential" left.

Could also be a coincident. The amounts of her judgements vary - but none of them is for less than $1,000. Mine was for $23K.

[freedomnow7]

Hey, Whatmoney, thanks a lot for this. I hope this helps the OP as much as it's helped me!

[WhatMoney]

I was reading somewhere that if you keep your money in an online bank that only has a physical office in Delaware, then your bank account cannot be levied because Delaware does not allow bank account levies. I will try to research this and post if I find anything.

There are at least three threads in the BK Forum that mention the Delaware levy law for non-governmental levies. So far there has been no confirmation from anyone I can find posting on the Internet that the Delaware banks enforce this rule. I expect anyone doing this does not want to speak up. The threads are here:

http://www.bkforum.com/showthread.ph...r-bank-account

http://www.bkforum.com/showthread.ph...re-Not-Allowed

http://www.bkforum.com/showthread.ph...ocial-security

[freedomnow7]

I was reading somewhere that if you keep your money in an online bank that only has a physical office in Delaware, then your bank account cannot be levied because Delaware does not allow bank account levies. I will try to research this and post if I find anything.

[HHM]

The sweet spot for collection lawsuits is $750-$3000. You will see more lawsuits in that range than any other because from a collection standpoint, those accounts have a higher return on investment. Through various methods, it is easier to actually collect on those amounts through garnishment, bank levy, and simply bullying the person into some sort of payment arrangement.

As was pointed out, there is no amount too small. But unless you are dealing with a payday loan (that sues in small claims court on its own behalf) it is relatively rare to see a suit for $500 or less.

[ryan]

As mentioned above, the act of suing takes so little effort on the part of these big creditors, its almost worth it for them to sue for any amount.

Going thru court records I've seen amounts as low as a couple hundred bucks but usually at least $500.
They get judgments as easy as a hot knife goes thru butter. Almost NO defendants show and if one does the judge will almost act startled!....I've seen 50+ credit cards sued tried in just one small court room in an hour and only 2or 3 defendants even showed (i was one).

NOTE: I also think if the creditors end up with a portfolio full of judgments it can be worth more on the debt reseller market than just a bunch of defaulted accounts.

[teddybeardj]

It seems to me that the one entity that will definitely sue is medical debt. For an institution of Mercy its amazing how little mercy they show people who owe them money. Credit cards will leave you alone on thousands you owe them, but medical debt will sue for a couple hundred dollars. Evil little people.

[jbanks]

They do have a site like this but do you do to civil cases?? then where to?? Thanks

[wnguyen]

I had some balances around $400 and they sent me a couple letters threatening to "take legal actions". Dang, if you wanna sue, just say it!

[GoingDown]

As for the amount they will sue over, it can be any amount. The only time I was ever sued was over a lousy $300 CrapOne credit card bill, in the WRONG state! So far they have not collected even one penny of that judgment from me, and have stopped calling me and stopped writing to me about it. And as far as I know at this point, the judgment is now so old it is beyond the statute of limitations for judgments in Arizona (5 years if they don't renew the judgment 45 days before the 5 year expiration date).

As for finding out whether someone has filed a lawsuit against you, your county should have some website like this...

http://www.superiorcourt.maricopa.gov/docket/

Once someone has filed a lawsuit against you, your money is not safe in a checking account or savings account, regardless of the exemptions. You don't have to do anything until someone files a lawsuit against you, but once they do, get your money out of there and start using cash, money orders, and pre-paid debit cards to pay for stuff. Until you file BK.

[flyinbroke]

I am filing against Brachfeld in small claims next week. They did a hard pull and refused to send any justification as to why. I suspect BoA but I don't have to put that anywhere in a complaint. They called my cell with autodialers several times...and it is a number NOT on file with anyone.

Our small claims is 10K. I offered to settle for half of that and a removal of the offending inquiry but neither the Houston office nor the queen bee herself ever bothered replying.

Fine. See ya in court.

(Someone filed in district court here on October 5, and it was dismissed by plaintiff on the 14th. I guess they hate that SUMMONS thing when it is for them.)

[treehugger1]

Funny you mention Brachfeld. They called me 1-2 times per month trying to say they were collecting for BoA. I told them they were lying as BoA has told me that I owe BoA nothing. (They sold my accounts to the entire freakin' CACH/LNV/ETC JDB monster.) In fact, it is amazing that BoA has no issue with me or my past history with them. The Brachfeld office kept telling me they were collecting on a BoA account. I kept telling them to call BoA as I have no account with BoA.

I requested that Brachfeld send me written information within the 5-day FDCPA window. They never sent anything. I am glad I recorded every conversation with the Brachfeld group. They don't call any longer. I guess they also know that it will be no easy/cheap task to come to backwoods Oregon and file in my county. They also know that attorneys cannot sue in small claims court here.

They are one group that If I were sued I might think about answering. I would be curious to know who the plaintiff would be. I also think a suit from them might be worth answering. They seem afraid to mention LNV.

Sorry for going off. This is just one law firm that clearly attempts to break rules and the law.

[tobee43]

On another board, a frequent FDCPA violator had sued someone for 58 bucks. That is right....58 bucks. Jacked it up several hundred for fees. I think the defendant got a couple thousand and the TL deleted when he countersued for FDCPA and state violations.

Moral of the story: amount does not matter. If you owe it, they can sue.

And yes, I got sued by a lawyer who runs a collection agency...he filed an average of 2-300 cases a month. It is said that Erica Brachfeld sues 500 or so a week, or some crazy number. Lawsuit mills don't care about amounts...most people won't bother showing up, giving them the default. Almost all the remainder do a full confession in their answer and get slapped with an SJ without going to trial.

unreal!!...u think these people are going to hell or what...what is the matter with them...write it off already...

[flyinbroke]

On another board, a frequent FDCPA violator had sued someone for 58 bucks. That is right....58 bucks. Jacked it up several hundred for fees. I think the defendant got a couple thousand and the TL deleted when he countersued for FDCPA and state violations.

Moral of the story: amount does not matter. If you owe it, they can sue.

And yes, I got sued by a lawyer who runs a collection agency...he filed an average of 2-300 cases a month. It is said that Erica Brachfeld sues 500 or so a week, or some crazy number. Lawsuit mills don't care about amounts...most people won't bother showing up, giving them the default. Almost all the remainder do a full confession in their answer and get slapped with an SJ without going to trial.