Lawsuits by Creditors: Exploring Your Legal Options
If you are struggling with debt, you are probably all too familiar with the harassing debt collection practices used by creditors. One of the most serious — and most frightening — is a lawsuit. When bills go unpaid, creditors will stop at nothing to get their money.
If a creditor has served you with a summons and complaint, you generally have 30 days to respond. If you do not respond, the creditor can issue a default judgment against you, they may gain access to your bank account and have your accounts levied, and they may garnish your wages.
Before you let this happen, talk to an experienced bankruptcy attorney. At the Leventhal Law Group, P.C. , I can help you determine if bankruptcy is right for you, and if so, guide you through the legal process. Obtaining debt relief may be easier than you think. Contact my law office to find out more.
How Does Bankruptcy Stop Creditor Lawsuits?
Once a creditor has filed a lawsuit against you, your defense options are limited. The fact is, you owe money, and your creditor is going to great lengths to get that money back — with no consideration of your ability to pay. At this point, your best option may be filing personal bankruptcy. Once you file Chapter 7 bankruptcy or Chapter 13 bankruptcy , an automatic stay goes into effect which stops all creditor actions against you, including lawsuits.
In addition to stopping lawsuits by creditors, bankruptcy offers many protections:
- It stops wage garnishment
- It stops bank account levies
- It stops foreclosure (Chapter 13)
- It stops repossession
- It stops all collection actions by creditors
- It can eliminate credit card debt
Contact a Woodland Hills and Los Angeles Bankruptcy Attorney
Are you being sued by creditors? Contact my law firm today to schedule a free consultation with a Los Angeles, California, bankruptcy lawyer. We can discuss how bankruptcy stops default judgments, stops garnishment, avoids levies and offers other protections.
We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.
