Some Reasons Not to File Suit on a Bad Debt in S. Carolina

Much of the time, if you have a delinquent account and a deadbeat that owes you money, you will want to sue them and collect a judgment.  However, there are many reasons that you will want to refrain from filing the lawsuit in South Carolina.  Let us discuss them.

Judgments are hard to collect in South Carolina-  There is no garnishing of wages in South Carolina with the exception of child support.  The first $50,000 of the equity of a house, $100,000 for a married couple is exempt from a judgment creditor.  Most people in a position to get a judgment against them are “judgment proof.”  Sometimes, people will want to sue someone for the “principal” of the matter.  However, it does not do you any good to sue and get a “paper judgment”, i.e. a judgment that you cannot collect on.  What is the point?  However, if you have someone about to sell their house, they will have to pay the judgment off before they can.  Then, you got them!

You cannot prove your case- I represented a man who was sued for a debt on a credit card that his ex-wife ran up.  I filed and answer and sent discovery requests to the Plaintiff’s attorney asking for the credit application.  They could not come up with the application.  I did not have to make a motion to dismiss- the Plaintiff’s attorney did it for me since he could not get his client to furnish the proof.

You filed your case too late-  You have three years in South Carolina to file a case from the date of the money last loaned or the date of the last payment.  I represented a client that was sued for a credit card beyond the three year period; the creditor tried to say that she did make a payment within three years before the suit was filed.  We were able to proof that her mother actually made the payment and my client did not tell her mother to do so.  The case was dismissed.

You might get countersued by the Defendant- I represented a client who wanted to sue a client for a suit on account for $7500 for a product.  The Defendant countersued for $75,000 for unfair business practices.  Sometimes, it is better to let sleeping dogs lie!

The money involved is just not enough-  I typically advise clients that if the debt is less than $1,000, do not file suit on it.  Just let it go.  It is not worth the hassle to take a case for that small to Court.

Don’t always think it is the best idea to file a suit on an account.   Talk with your attorney and see if it is a good idea.