Recurring debts and overspending, as well as some ill-fate, can cause financial problems in anyone\u2019s lives. If you are facing issues regarding the shutdown of utilities or foreclosure, repossession, etc. or are at the receiving end of legal actions due to non-payment of dues and similar debts, then you might be in for some tough time. Creditors and debt collectors can resort to legal actions wherein they can file summons with the court so as to make a debtor answerable in the court, often with the intention to get a garnishment.<\/p>\n
In case a debtor has various financial concerns, getting a summons can be quite frightening. Most of the times, legal actions so are taken involve unsecured debts which if filed for bankruptcy can be discharged by the court. Los Angeles based law firm Recovery Law Group suggests that you can respond to summons depending on your unique circumstances \u2013 whether you have filed for bankruptcy or planning to file for it. It is important to consult with specialized bankruptcy lawyers as they are better adept in providing a tailored response as per your unique problems. Individuals are better guided on the steps individuals must take to deal with financial problems, debt relief, and summons.<\/p>\n
What Happens When You File for Bankruptcy?<\/strong><\/p>\n Whether you file for bankruptcy under Chapter 7 or Chapter 13, the automatic stay comes into effect. This order prevents the action of collecting agents and creditors from collecting any dues from you. Simultaneously, any legal action pending against you (summons and foreclosure) are also put to a stop. In case you are being sued for any unsecured debt and you choose to file under Chapter 7, the debt related to the claim will most likely be discharged. In case you file for Chapter 13 bankruptcy<\/a>, a fraction of what you owe will have to be paid to the creditors.<\/p>\n Exceptions to Being Sued<\/strong><\/p>\n Despite the advantages of filing for bankruptcy, there are few exceptions where you might not receive a discharge and\/or get sued. Some debts like a student loan, taxes and spousal or child support cannot be discharged.<\/p>\n It is important to understand if proper handling of summons is not done, you could be facing severe legal repercussions. You are provided with a fixed amount of time to answer the summons. In case you do not answer the complaint or are unable to appear in court on the scheduled date, you could get default judgment which won\u2019t help your cause. Filing for answer provides you with more options to deal with the situation, whether to file for bankruptcy or opt for debt settlement.<\/p>\n It is important to consult with a qualified bankruptcy lawyer<\/a>, once you receive a summons. The potential impact of the summon on your finances, how to begin debt relief options like bankruptcy as well as the best way to handle them; is best explained and handled by qualified professionals.<\/p>\n\n <\/p> \n
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