Collection Lawsuits

Have you been slapped with a debt collection lawsuit? If you haven’t been paying on a bill, getting sued may not come as a surprise. Although you may be tempted to try to shrug off the lawsuit, contact the Law Office of Davis & Jones, P.C., instead.

Our debt relief attorneys have decades of experience helping people resolve their financial difficulties. We can recommend a plan for bringing your money troubles to an end. We’ve guided more than 20,000 Utah residents down the road to debt relief and we can do the same for you. If one of your creditors has filed a debt collection lawsuit, we invite you to schedule a free consultation with our legal team.

How NOT to Deal with Collection Lawsuits

Debt collection companies can be uncomfortably aggressive. If constant phone calls, threatening letters, emails and texts don’t compel you to pay the money you owe, the next step is a collection lawsuit. 

Often, people ignore these types of lawsuits – but that’s what creditors hope they’ll do. If a response isn’t filed with the court, the creditor receives a default judgment. Once that occurs, they can legally garnish your wages, go after your bank account, put a lien on your property or take other actions to collect on the debt.

Clearly, closing your eyes to a collection lawsuit isn’t doing yourself any favors. A smarter approach, in many cases, is to file a Chapter 7 bankruptcy claim.

Benefits of Filing for Bankruptcy

If you’ve been served with a debt collection lawsuit, bankruptcy might be the solution you need. When you file for Chapter 7 or Chapter 13 bankruptcy, an automatic stay is immediately put in place, which effectively pauses the lawsuit. 

The automatic stay in bankruptcy stops most debt collection actions. By filing for bankruptcy you can avoid wage garnishments. Even if your wages are already being garnished, bankruptcy will stop it from proceeding any further. Plus, you won’t have to worry about your creditors putting a lien on your property or freezing your bank account.

The biggest benefit of filing a Chapter 7 or Chapter 13 bankruptcy case is the fact that doing so can eliminate unsecured debts. If you’re being sued for unpaid medical bills, an outstanding personal loan, nonpayment of a credit card balance, a deficiency balance or another debt, bankruptcy can end both your obligation to pay and the collection lawsuit.

Consult with a Debt Relief Attorney Today

Bankruptcy doesn’t stop all lawsuits, and filing a Chapter 7 case isn’t always the best route to debt relief. For these reasons, if you’re being sued, you should contact the Law Office of Davis & Jones, P.C., for legal advice and an expert opinion on how to regain financial stability. 

Our debt relief attorneys will review the lawsuit and evaluate your overall financial situation, then advise you on the right way to move forward. Whether that involves debt settlement, Chapter 7 bankruptcy, Chapter 13 bankruptcy, or another approach, we’ll guide you along every step of the way.

To discuss your collection lawsuit and find out if filing for bankruptcy is the best remedy for your financial woes, reach out to our office in Salt Lake City, Utah, today.