One of the most common reasons people file bankruptcy is because they have been served with a Summons notifying them of a lawsuit that has been filed against them. Bankruptcy stops lawsuits and summons. Bankruptcy has the power to stop lawsuits and summons through the power of the automatic stay. If you have been served with a lawsuit or summons, contact us to schedule a free consultation to assess your bankruptcy qualification.
The most common lawsuits come from credit card debt. Whether or not the debt is still owned by the credit card company is another matter. Sometimes they are and sometimes not. A lawsuit is usually a source of surprise and concern for most of the people that call us. They usually have a credit card debt that hasn’t been paid in a long time and they’ve in essence forgotten about it. Then out of the blue they get served with a lawsuit.
This is the usual course of a credit card debt lawsuit. At first, the credit card companies will call you day and night. Your account will go into “collections” and the threats will start. Then, if you do not make any arrangements to pay it off, the credit card companies will eventually stop calling you. This will last for many months sometimes even years. Then a company that buys bad debt may buy your account. Their business is based upon suing people and they’ll sue you on a credit card debt that you thought had gone away.
Once a lawsuit has been filed, a person can either make arrangements to pay off the debt or they can file for bankruptcy and stop the lawsuit in its tracks. If the person does nothing and lets the lawsuit go to judgement, a judgement will be granted and wages may be garnished or bank accounts levied. In most cases, the best thing to do is to file for bankruptcy because of the size of the debt and also because there are other credit card debts that are also delinquent.
If a credit card company or a company that purchased your credit card debt is suing you for a debt, you need to talk to a low cost bankruptcy lawyer to find out if bankruptcy is a good option for your situation.