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What if a Creditor Sues Me?

What if a Creditor Sues Me (2).jpgIf you are struggling with debt, you are well aware of this timeless fact: creditors are relentless in their pursuit of money. They are willing to engage in all manner of collection efforts, including harassing letters and phone calls to get what they believe they are owed. Sometimes, creditors will even file lawsuits against debtors.

Failing to Respond to a Lawsuit is Not in Your Best Interest

Many times, creditors file a massive number of lawsuits at the same time against different debtors. A lot of times, these are debts that they have purchased for cheap from other creditors. This is a calculated gamble in that they believe that many of the defendant debtors will ignore the legal pleadings they are served with. When a debtor is served with a lawsuit from a creditor and fails to respond in a timely manner, the creditor is entitled to "default" judgment in which the court rules in favor of the creditor and grants them the relief they request.

You may be wondering why a creditor would seek a court order against someone who can't repay a debt. Isn't that just a waste of time and money? The answer is no, because of powerful consequences like a judgment lien. When a creditor has obtained a judgment against a debtor, it can attach that order as a lien on the debtor's real estate property. The creditor perfects this judgment lien by filing it in the New Jersey Superior Court Clerk's Office in Trenton, where it attaches to any non-exempt real estate that the debtor owns in the state. The creditor may also garnish your wages. Therefore, if you are struggling with debt, the LAST thing you want to do is to ignore a lawsuit. Instead, speak with a debt relief attorney immediately.

Are there Bankruptcy Proceedings?

The existence of bankruptcy proceedings has an enormous impact on creditor lawsuits. This is because one of the critical elements of bankruptcy relief is the automatic stay, which puts a halt to all pending collection efforts, including pending lawsuits. So, if a creditor has sued you, then filing for bankruptcy will stay those proceedings and prevent the creditor from obtaining a judgment against you. Even if a judgment lien has already been perfected prior to your bankruptcy proceedings,in many cases that lien can be removed in bankruptcy.

You Need an Attorney

Creditor lawsuits are no joke and should not be ignored under any circumstance. The consequences of a creditor perfecting a judgment lien against your property can be terrible. Let us help you. At Levitt & Slafkes, P.C., we provide smart, effective representation to our clients. With 30 years of legal experience, we can guide you through a custom-tailored debt relief plan so that you can breathe easier and move forward. Call Levitt & Slafkes, P.C., at (973) 323-2953, or reach us online to schedule a free consultation.

We are proudly designated as a debt relief agency by an Act of Congress. We have proudly assisted consumers in filing for Bankruptcy Relief for over 30 years.

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