Prosecution is one of the means for small loan companies to collect debts, but not all small loan companies will sue if they owe money. Under normal circumstances, small loan companies will only make dunning by SMS, telephone and door-to-door. After all, prosecution is not easy. The process is complicated and consumes manpower and material resources. The point is that you may not get the money if you sue. In addition, small loan companies themselves may have various violations, and they will not sue unless they have to. But don't take any chances. For those who owe more than 5,000 yuan and fail to repay for three months, the possibility of being sued is still relatively large. In real life, many people are really sued by small loan companies because they owe money.

What will happen if the money owed to the small loan company is sued?

The ultimate goal of suing small loan companies is to enable lenders to repay loans. Therefore, it is no problem for the lender to pay back the money after being sued. If he has no money to repay, but can borrow money from relatives and friends, he will quickly raise money to repay the arrears. And if there is really no money to pay back, it will be handled in three situations.

1, temporarily unable to repay, which means I can't afford it now, but I have a job and income. It will take some time to pay off the money. After being sued, you can see if you can negotiate with the small loan company to repay the loan in installments under the mediation of the court. If the microfinance company agrees to negotiate, it may re-sign the installment repayment agreement according to the lender's actual situation, and the lender shall repay the loan on time every month as agreed in the agreement.

2, permanently unable to repay, no job and no income, the key is that you may lose your capacity for civil conduct and can't make money. That doesn't mean you can't pay back without money. After the court decides, you have to repay the debtor's existing property as much as possible.

3. Being able but unwilling to repay the loan, or even deliberately resisting violently when the court takes enforcement measures, may rise from ordinary civil disputes to criminal cases, and the lender shall be investigated for criminal responsibility according to the crime of refusing to hold the loan, such as judicial custody, fine or even imprisonment.

Legal basis:

People's Republic of China (PRC) Civil Code

Article 667 A loan contract is a contract in which the borrower borrows money from the lender, repays the loan at maturity and pays interest.

Article 676 If the borrower fails to repay the loan within the agreed time limit, it shall pay the overdue interest in accordance with the agreement or the relevant provisions of the state.