Midland Funding is on my Credit Report? Will They Sue Me?

Long before debt buyers like Midland Funding file a lawsuit they start the whole debt collection process by showing up on your credit report.  Soon after you will receive a letter or two entitled the “Pre-Legal Notification” from a company known as Midland Credit Management.  Midland Credit Management is the servicing company for Midland Funding and handles the sending of such letters.

The fact that Midland Funding is showing up on your credit report and even if you have received the”Pre-Legal Notification” does not necessarily mean that you are going to be sued by Midland Funding – but there is a good chance you will.

Midland Funding is in the business of collecting debts.  And the way they collect is through filing lawsuits.  Midland Funding is not like your run-of-the-mill debt collector who calls you night and day and hopes to get you on a payment plan.  They file lawsuits and beyond that don’t do a lot of the traditional collection type activity.

So the chances of them suing you are fairly good if you see them on your credit report, although it may be as long as two years before they take any action.

Ways to Avoid Being Sued by Midland Funding

The idea of being sued and having to deal with the court system is stressful to everyone.  The best two ways to avoid being sued is to try and settle the debt when you receive the “Pre-Legal Notification” letter or to file for bankruptcy.

If you don’t have a lot of debt bankruptcy may not be the best option.  With that in mind you may be able to avoid the Midland lawsuit all together by reaching and settling the debt.  Early on in the process you may be able to get fairly reasonable settlement.  If you are able to pay a lump sum you may get them to accept 30%-60% of what they are alleging is owed.

If you want them to take payments over time you should expect to pay more.  Regardless of how the settlement is structured it is important that you get something from them in writing confirming what the terms of your settlement are.

If the possibility of being sued by Midland Funding is just the tip of the ice berg when it comes to your debt problems you may want to consider bankruptcy.  If you file for bankruptcy it will eliminate debts like the one Midland Funding is alleging they are owed and will also stop them from ever filing a lawsuit against you.

The important thing to know and understand at this point is that you do have options if you notice Midland showing up on your credit report.  I have given up on guessing when they will or won’t file a lawsuit, but in most cases they will eventually pursue you through the courts.

And while it is beyond the scope of this article, it is also important to understand that if you do happen to be sued by Midland Funding that the lawsuits are entirely winnable.  Check out my video below on Midland Funding and why you can win your case.

Photo Credit: Alon