Many of the clients with which I meet have recently been served with a complaint in a lawsuit. They are understandably on edge and uncertain about what they can do or what may happen next. Each lawsuit and situation is different, but the worst thing to do is always the same: take no action. If no action is taken, the creditor will likely get a default judgment. With the default judgment, the creditor can then (in most cases very quickly) get a court order to have wages garnished or place a lien on real property.
When a client is in this situation, we frequently first explore the options to defend the lawsuit as well as the ramifications if a judgment is obtained by the creditor. Depending on the client’s specific situation, we will usually look at bankruptcy options as well. Once a bankruptcy is filed, an automatic stay goes into effect, immediately stopping most lawsuits and garnishments. This is a very powerful tool, and in most cases, leads to the creditor being stopped in its tracks.
If you or a loved one is in a similar situation, give one of our offices a call to schedule a free consultation. We’ll answer all your questions and help restore your peace of mind.
