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When faced with a credit card overdraft or overdue loan, many borrowers fear that the bank will sue them. So, is it possible to avoid being sued by the bank by paying a little bit every month?
First of all, we must make it clear that the premise of suing the borrower is that the borrower has seriously defaulted and has not been able to repay the loan on time after repeated reminders. In this case, the bank may take legal action to defend its rights by suing.
If the borrower repays a certain amount of money every month, the bank will assume that the borrower has the willingness and ability to repay, thus reducing the possibility of prosecution. However, this does not necessarily mean that banks will not sue borrowers. If the borrower's repayment amount is much less than the principal and interest of the loan, the bank may consider the borrower to lack the willingness or ability to repay and may still take legal action.
If the borrower is able to negotiate a repayment agreement with the bank and repay the loan on time in accordance with the agreement, then the bank will also reduce the likelihood of suing. If the borrower can prove that he or she is willing and able to repay the loan, but for some reason is unable to pay off the arrears in one lump sum, the bank may consider giving the borrower more time to repay the arrears gradually.
Therefore, if the borrower has already overdue, repaying a little every month can show his willingness and ability to repay, but it does not completely avoid the possibility of being sued by the bank. The best way is to negotiate a repayment agreement with the bank as soon as possible and repay the loan on time in accordance with the agreement to avoid more serious consequences.
Paying a little every month does not guarantee that the bank will not sue the borrower, but it can indicate the borrower's willingness and ability to repay the loan, reducing the possibility of being sued. The best way is to negotiate a repayment agreement with the bank as soon as possible and repay the loan on time in accordance with the agreement to avoid more serious consequences.