Can creditors sue me after settlement?

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Yeah, for sure! A collection agency might agree to settle with you for a much less amount than what you actually owe. But then might hire another to collect the remaining amount. This is, however, banned in many states. Once after cashing your check, even if the creditor puts down "I don't agree" on the check, he can't chase you to collect the remaining amount. This law is enforced in the following states:
 
Arkansas
Colorado
Connecticut
Georgia
Kansas
Louisiana
Maine
Michigan
Nebraska
New Jersey
North Carolina
Oregon
Pennsylvania
Texas
Utah
Vermont
Virginia
Washington
Wyoming
 
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I don't agree with Rachel. Yes, your creditor can sue you at anytime and even after any kind of settlement. Actually, anyone can sue anybody for anything. If the creditor has any doubt, he can at anytime sue you. However, you must have the necessary settlement documents where there is written "paid in full" or "received in full" by the creditor or by the collection agency to defend your case in the court.

 

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Legally, they cannot do it. In most states, after you have completed your negotiation and proceeded with debt settlements, the creditors and collectors can neither ask you for the balance, nor sue you. It is illegal for them to do so.


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