I Help Good People Solve Their Debt Problems

Being sued by a creditorMore people are being sued to collect unpaid debts than ever before. The bad economy means there is less room for creditors to ignore unpaid debts or shrug their shoulders and call it a “cost of doing business.”

Many people don’t seriously consider filing for bankruptcy until they are being sued by a creditor or until even a judgment is entered against them. You’d be surprised at the number of people who call me a day or two before their paycheck is set to be garnished.

What Happens When A Creditor Sues Me?

A lawsuit begins when the creditor files a complaint against you at the court. Then the creditor must serve you with a copy of the documents and you have 30 days to file your answer/response.

If you don’t file your answer within the 30 days of being served, your creditor can file for a default judgment against you.

Filing for bankruptcy will immediately protect you from angry creditors. Why? Because the bankruptcy code prohibits creditors from taking any further action against you to collect a debt. This means creditors can’t:

• Sue you,
• Write you,
• Call you,
• Garnish your wages,
• Levy your bank account,
• Or take any other action against you designed to collect the money.

For more information, Read This >

If The Creditor Gets A Judgment What Happens Then?

Once the judgment is entered, the creditor can:

• Put a lien on your assets
• Garnish your bank account
• Garnish your wages.

In California a creditor can take up to 25% of your paycheck until the judgment is paid in full (with interest). Just imagine that … if you’re living on the edge right now, think what a reduction of 25% will do to you!

For more information, Read This >

Is It Too Late For Bankruptcy After The Creditor Has A Judgment?

No, it’s not too late. Generally, a California judgment for an unsecured debt (credit card, arrears on auto payments, personal loan, etc.) can be wiped out in bankruptcy.

But waiting until after a judgment has been entered against you does put you in an extremely dangerous position.

For example . . .

Fraud is not dischargeable in bankruptcy. If the complaint alleges fraud or another claim that would make the debt non-dischargeable in bankruptcy, entry of judgment against you can prevent you from later getting the debt discharged in bankruptcy.

If the creditor has filed a judgment lien on your home or personal property, you’ll have to do a motion to avoid the lien. This can be done if you have an exemption on the property. But if you didn’t wait you wouldn’t have to incur all that extra expense and stress.

Are you being sued by a creditor? Don’t wait. The situation isn’t going to magically get better without you doing something. Call me and let’s talk.

Perhaps you have some questions. You can reach my by phone at 760-523-9090. Or just click on the ORANGE “Contact Me” button at the top of your screen. I’ll contact you back and make arrangements to meet with you.

Talk with me. I’ll treat you like a friend.