Have you ever asked “What should I do if creditors are suing me?”
When you have missed some of your debt payments and have not been able to negotiate a repayment plan with your creditors, these creditors may decide to file a lawsuit against you to try to reclaim some of the money owed to them. If or when this happens, you will usually be served with a summons to inform you about the legal proceedings initiated against you.
These lawsuits, which may be known as creditor lawsuits or debt collection lawsuits, can result in judgments against you that can allow creditors to:
- Initiate foreclosure proceedings on your home.
- Try to repossess your vehicles or other property.
- Garnish your bank accounts and wages.
While you may choose to ignore or not respond to the summons, answering the complaint can be critical to defending your rights and property. However, you may have other options for staving off creditors, protecting your property and getting out from under crippling debt.
How Filing for Bankruptcy May Help
When debt collection lawsuits are filed against people, one of the most effective options people have to stop creditors dead in their tracks is to file for bankruptcy. In fact, when people file for bankruptcy:
- A court order known as an automatic stay goes into effect immediately.
- The automatic stay prevents creditors from initiating debt collection lawsuits against people (if creditors have threatened but not officially initiated these proceedings).
- The automatic stay stops creditors from being able to garnish people’s wages, repossess their property and/or foreclose on their homes even if creditors have been awarded a judgment in a creditor lawsuit.
In addition to offering people immediate court protections in the form of automatic stays, bankruptcy can also provide these individuals with real debt relief and a financial fresh start.
If you are facing a creditor lawsuit, make sure you have experienced, professional legal help on your side so that you don’t end up getting into more financial and legal trouble. Contact the Denver, Colorado bankruptcy lawyers at Greenwald & Hammond for advice regarding your best options for resolving creditor lawsuits.
Denver Bankruptcy Attorneys at Greenwald & Hammond, P.C.
Have you been served with a summons for a creditor lawsuit? If so, don’t hesitate to contact the Denver bankruptcy lawyers at Greenwald & Hammond, P.C. We are here to provide you with honest answers about your situation and clearly lay out your best options for resolving your financial and legal issues.
At Greenwald & Hammond, P.C., our Denver bankruptcy attorneys are committed to making sure that you are able to obtain real relief from debt and that you know what to expect at every stage of your case. Our focus is on helping you obtain the best outcomes to your important legal and financial matters.
Contact Us Today
Let’s discuss your case and how we can help you resolve your serious debt. To schedule an initial consult with us, call (303) 832-2550 or (866) 491-2389 or email us using the contact form on this page. From our offices in the Denver Metro Area, we serve people throughout Colorado.