Call: 888-297-6203
Getting sued frequently causes panic followed by the feeling that you need to declare bankruptcy immediately.
Does this imply that one must declare bankruptcy?
There are no definitive answers to the topic since the legal theories behind litigation might differ greatly. A complaint may be as straightforward as a collection action or as complicated as a corporate tort lawsuit. However, it’s quite unlikely that one has to declare bankruptcy today, this week, or even this month. However, you could choose to respond to the lawsuit.
Should One respond to the grievance?
If we don’t respond to the complaint, the law presumes that users agree with the lawsuit’s claims.
If you have a defence or want to buy some time to think about your alternatives, you might want to think about responding to the case. The court’s legal self assistance website offers information on how people can represent themselves in state law cases (excluding bankruptcy) online.
What happens if We don’t take action?
If users don’t submit a response, the plaintiff (the party that filed the lawsuit) may request that the court enter a judgement in ones favour for the sum specified in the complaint. If there is no damage amount specified in the complaint, the plaintiff must present evidence of the extent of the harm. In general, you are not allowed to take part in the hearing to determine damages unless users responded to the complaint. Once a judgement has been rendered, the claimant may place a lien on the property and utilise the sheriff’s services to levy your bank accounts and deduct money from their pay checks.
One might be able to completely disregard the lawsuit if all of his assets and income are exempt under state law and users anticipate that scenario lasting for a very long time. Anyone can bargain with a creditor to get the judgement paid even after the creditor receives a judgement. Users may be able to bargain a reduction in the judgement amount in exchange for voluntary payment because the creditor incurs costs and delays while pursuing legal procedures to collect a judgement.
If you reside or visit Los Angeles or Texas, Recovery Law Group is a recognised firm that can help you with any of your bankruptcy-related issues. You may reach them by phone at (888) 297-6203 or online at https://recoverylawgroup.com/bankruptcy/
Is bankruptcy required before there is a judgement?
First off, one must keep in mind that it may take many weeks or even months after the complaint has been served for the creditor to really get a judgement that he can rely on.
The exact minimum time durations necessary are set down in each state’s laws as specific time periods. In reality, the majority of institutional creditors, such as credit card firms, don’t move these lawsuits through quickly. In general, a debt represented by a judgement can be discharged in the same way it might have been before the judgement was entered.
Only if it affects an exemption is a judgement lien that attaches to property avoidable by the debtor. When a judgement is entered against a person, users may not be able to later argue the facts if the complaint asserted fraud or other circumstances that would preclude a debt from being discharged in bankruptcy (i.e. you may be unable to get a bankruptcy court to hear your side of the fraud charge in a non dischargeability action). A judgement will liquidate a debt if it is unliquidated (uncertain in size), which may increase overall obligations above what is required to qualify for Chapter 13 with its extended discharge and affordable reorganisation options.
Does bankruptcy prevent wage garnishment?
Yes, garnishments against earnings received following the filing of the bankruptcy will end. If the earnings would have been exempt absent the filing, the sheriff or the creditor may be entitled to reclaim them. The only conceivable exemption relates to the collecting of child support.
Are bankruptcies the answer?
In general, a single debt should not be the sole factor in deciding to file for bankruptcy. Take into account the overall financial situation, the range of relief bankruptcy provides, and non-bankruptcy alternatives.
However, starting a collection action frequently confirms that action must be taken in order to recover control over ones financial destiny.
Does bankruptcy prevent wage garnishment?
Yes, garnishments against earnings received following the filing of the bankruptcy will end. If the earnings would have been exempt absent the filing, the sheriff or the creditor may be entitled to reclaim them. The only conceivable exemption relates to the collecting of child support.
Are bankruptcies the answer?
In general, a single debt should not be the sole factor in deciding to file for bankruptcy. Take into account the overall financial situation, the range of relief bankruptcy provides, and non-bankruptcy alternatives.
However, starting a collection action frequently confirms that action must be taken in order to recover control over ones financial destiny.