When you are out of money you are out. There is not a lot that you can do once there is nothing left in the budget. But creditors and collectors don’t seem to care do they? Often times a creditor will take the collection process a step further and sue you in State Court. Usually you don’t have a defense against the suit (because you owe the money) and the creditor gets a judgment against you. What can you do now?

Results of a Judgment

Not only does a lawsuit look bad on your credit report, in most cases, the resulting judgment against you puts a lien on your real property. And what is worse, the creditor is also allowed to collect interest on the judgment as long as it remains unpaid. So your debt keeps getting larger and larger. The creditor is awarded not only the amount that you owe, but in many cases he is awarded attorney fees and court costs as well.

What happens if I do nothing when I get sued?

If you do not file an answer, the plaintiff (the entity that brought the suit) can ask the court for entry of a judgment in the amount stated in the complaint. If no amount is given, then the plaintiff has to put on proof of the amount of damages. Usually, unless you answered the complaint, you cannot participate in the hearing to set the damages. The “damages” set forth by the plaintiff may be much more than you might anticipate.

Is there a solution?

Yes. Even some judgments cannot be discharged completely, there is help available under Federal Bankruptcy Laws. Sometimes, the debt never has to be paid back. Each case is different and you should seek the counsel of an experienced Bankruptcy attorney. You may even get some relief from your “non-dischargeable” debt which can often be controlled with Chapter 13 bankruptcy laws. 

Will bankruptcy stop garnishment on a judgment against me?

Bankruptcy can stop garnishments for wages earned after the filing of the bankruptcy. Wages earned before the filing may be recoverable from the sheriff or the creditor if those wages would otherwise have been exempt. The only possible exception concerns child support collections. The child support cases depend on what chapter bankruptcy case is filed and whether the support first came due before the commencement of the case, etc.   Everything you think is hopeless has a solution....if you ask the right person!

The Law Office of Steven P. Taylor, P.C. can give you straight answers to tough questions. They can also start the process to give the debt relief that your deserve on the first visit!

Make the call now! 

Call for a FREE Confidential Visit at: 1-800-966-8447 or
317-475-1570.

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