Legal Question in Credit and Debt Law in Alaska
How many times can I be sued regarding a debt?
I am being sued in small claims court by someone that I owe money. The plaintiff is only suing for four months worth of payments that I am behind on this debt. My question is this; If the plaintiff wins this case as I would expect, can he sue me again at a later date for the remainder of the balance?
1 Answer from Attorneys
Re: How many times can I be sued regarding a debt?
In general, the creditor has several choices in this situation. He or she can sue for each installment as it becomes overdue, wait a few months for back payments to accumulate, and then sue periodically, or wait until all of the installments are due and then sue for the whole amount of the debt.
If the note contains an acceleration clause, once the debt has remained in default for a stated period of time, the creditor can declare the entire debt due and payable immediately, and sue for the entire amount without having to wait or collect it "piecemeal".
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