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When debt collectors sue

If your creditors are suing you, it is a very serious situation indeed. You will need to take immediate action if you wish to stop the proceedings.

Most creditors only file lawsuits when a debt has gotten very delinquent or the debtor has made no attempts whatsoever to make payments. There is another reason they might sue you, and that is if the statute of limitations on the debt is about to run out.

At any rate, if you are being sued, it's time to take action. One action you might consider is filing for bankruptcy relief.

What you can do

Don't panic, but don't discount the seriousness of the matter. Ignoring the problem will result in a default judgment being entered against you, and that is not good.

At this juncture, you will need to retain an attorney. You could benefit from consulting a consumer law attorney. Bankruptcy attorneys understand debt collection lawsuit process and know what to do if a collector wins a judgment against you.

They can explain to you which of your property is safe and which is at risk of being seized by your creditors. If the lawsuit has not yet been served on you, they can arrange for service of process to come to them instead of you.

You must go to court

You, or your attorney of record, must show up for the court proceedings against you to avoid having a judgment entered against you. The creditors can seize your bank account and even garnish your wages from your employer.

That judgment will remain on your credit report for seven full years, even if it gets paid off.

Check your credit reports

You may only find out that a creditor or collection agency has obtained a default judgment against you when you see it on your credit report. You may have never been properly served with the petition and could potentially be able to have the judgment against you vacated by the court.

When it comes to you and your debt load, it never is a good idea to bury your head in the sand and ignore the matter. Knowledge is power, and armed with information, you and your Chapter 7 bankruptcy attorney can take the necessary steps to get yourself debt-free.

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Law Office of Ginger C. Cord, PSC
155 E. Main Street
Suite 330
Lexington, KY 40507

Toll Free: 800-762-6916
Phone: 859-963-2073
Fax: 859-254-2192
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