Are you being sued? Here’s how bankruptcy can help.

If you are being sued in an attempt to collect credit card debt, old medical bills, or car loan or lease deficiencies after repossession, you need to respond – whether it is to contact the creditor and attempt to settle for an amount less that what you owe, defend in the lawsuit and perhaps settle, or file a bankruptcy petition.  If you ignore court papers or do nothing about the lawsuit, you risk defaulting and having a judgment filed against you.  The creditor can then garnish your wages, levy your bank accounts, or even worse, file a statewide lien on your real property and turn that unsecured debt into secured debt that must be paid if you sell or refinance your home.  In this way unpaid debt can haunt you for years.

Here’s how bankruptcy can help:  when you file bankruptcy under either Chapter 7 (if income-qualified) or Chapter 13, the “automatic stay” prevents creditors from attempting to collect a debt from you or even contacting you in any way. Harassing phone calls and letters stop, and lawsuits are halted in their tracks.  If all goes as it should with your filing, you are then discharged of your unsecured debt and get a fresh start – none of your pre-petition creditors can ever sue you or even contact you again about that old debt.  If you are interested in learning more, complete our short online Evaluation or contact us to schedule a free consultation.  We look forward to helping you.

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