If you’re dealing with substantial debt, your stress level is already high – and being served with a creditor lawsuit is like adding insult to injury. Rather than simply ignoring the issue, use it as motivation for contacting the Law Office of Davis & Jones, P.C. to schedule an attorney consultation.
Turning a blind eye to a lawsuit is likely to lead unfavorable consequences. You can expect the court to grant a default judgment. If that happens, the creditor who sued you has the legal right to freeze your bank account, garnish your wages, attach a lien to your property and take other steps to collect the money you owe. From then on, your financial situation could slide even further sideways.
Our experienced debt relief lawyers can handle creditor lawsuits and safeguard you against future debt collection actions. We’ll find a way to help you get back on solid financial footing.
Responding to Creditor Lawsuits
If you’ve been served with a lawsuit, the summons will indicate how much time you have to respond. In Utah, that’s typically only 21 calendar days. To best protect your rights you should contact a debt relief lawyer as soon as you find out you’re being sued.
To contend with a creditor lawsuit, your attorney may recommend filing an answer to the complaint. If successful, this approach could limit or exclude your liability for the debt in question. However, for many people who are being sued, filing a Chapter 7 or Chapter 13 bankruptcy case can be a more effective strategy for solving the problem.
Stopping Creditor Lawsuits
Filing for bankruptcy puts an immediate stop to lawsuits resulting from unpaid debts. Once the Utah Court has your Chapter 7 or Chapter 13 bankruptcy petition, an order called the automatic stay springs into effect. This prevents your creditors from taking any collection actions. That means your creditor’s lawsuit will be put on hold.
If you’re being sued because you have failed to pay a debt, bankruptcy may be in your best interests. Your debt relief lawyer may advise you to file for Chapter 7 or Chapter 13 if your lawsuit is based on any of the following:
- An outstanding credit card balance
- Significant medical debt
- An unpaid personal loan
- Money owed after a repossession or foreclosure
- Debt owed after an eviction or broken lease
In these situations, the underlying debt may be included in the bankruptcy discharge, ending your obligation to pay. As a result, the court case is permanently stopped.
Talk to a Debt Relief Lawyer Today
Chapter 7 bankruptcy is one option to stop creditor lawsuits. Filing a case can eliminate all of your other eligible debts. After bankruptcy, you’ll have much better control over your finances – and you’ll be free from the constant stress that comes with juggling the bills.
However, bankruptcy isn’t right for everyone. At the Law Office of Davis & Jones, P.C., our debt relief lawyers carefully evaluate each client’s financial situation before providing advice on how to proceed. We can determine if Chapter 7 bankruptcy, a Chapter 13 debt consolidation plan or another approach is the best way to get you back on your feet.
To schedule a free consultation with a highly experienced debt relief lawyer, contact our Salt Lake City, Utah, office today.
Talk to a Debt Relief Lawyer Today
Chapter 7 bankruptcy is one option to stop creditor lawsuits. Filing a case can eliminate all of your other eligible debts. After bankruptcy, you’ll have much better control over your finances – and you’ll be free from the constant stress that comes with juggling the bills.
However, bankruptcy isn’t right for everyone. At the Law Office of Davis & Jones, P.C., our debt relief lawyers carefully evaluate each client’s financial situation before providing advice on how to proceed. We can determine if Chapter 7 bankruptcy, a Chapter 13 debt consolidation plan or another approach is the best way to get you back on your feet.
To schedule a free consultation with a highly experienced debt relief lawyer, contact our Salt Lake City, Utah, office today.