If a debtor has made payment arrangements, can they still be sued by their creditor?

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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 10 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.


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