How Filing for Bankruptcy Protection Can Stop a Lawsuit and Get You Out Of Debt
If you're reading this, chances are you're being sued because of
how far you're past due to the creditor. Depending on the specific
situation people find themselves in, this scenario prompts many people
to consider filing for
bankruptcy protection.
In California, the lawsuit process begins when you are served with a Summons
& Complaint. All too often, clients don't read these documents,
believing that they will get a court date. But, it doesn't work that
way. You've only got a short time to answer the Complaint or else
the creditor can obtain a default judgment against you. And by "Answering"
I don't mean you send a letter to the creditor or to the court. You've
got to file an official Answer with the court, in the proper format, and
you've got to serve that answer on the creditor. Plus, you have to
pay the court filing fee.
If you don't answer the Complaint, the creditor will automatically
obtain a judgment against you. The only time I would tell my clients to
answer the Complaint is if you really do have a defense, or just need
to buy time.
What are you buying time for? If you answer the Complaint, the court will
now set up status conferences and trial dates and other deadlines. So,
if you finally go to trial after going through all this- chances are you
will lose because you owe and don't have any defenses.
I always try to ascertain from the client if this is the only debt. If
it is, then you may want to Answer the Complaint, or at least get on the
phone and settle it. But, if this is just the tip of the iceberg, and
you owe a lot of other creditors, then filing for bankruptcy will stop
the lawsuit, get you out of debt, and stop all of your other creditors as well.
The longer you wait to do something, the more likely that the creditor
will obtain a judgment against you and then they will satisfy that by
garnishing your wages or levying your bank accounts.
To find out what your options are, Call the Denton Law Group today at (619)
458-3739 and
schedule your free consultation.
