If you have a creditor who is suing you, it is very likely that you have received a court summons to attend a court date or a judgement as a result of a court date. If you have defaulted on a creditor for 90 days or more, a creditor can take you to court and sue you for the debt amount along with penalties and other costs. At this stage of default, you do still have time to act.
A bankruptcy will eliminate the underlying debt and stop any collections activity as a result of the judgement against you in court. Once a creditor is able to get a judgement against you in court, they can initiate a wage garnishment or bank account levy. No matter how many different collections companies have been trying to collect on the debt, you will still have all collections activities stopped when you file for bankruptcy. We can illustrate further with an example. If I have a debt from Chase Bank and Chase Bank sells the debt to Acme Collections Company, Acme Collections can take me to court for the debt. Suppose I received a summons from Acme Collections and they got judgement against me for the debt. I can file for bankruptcy against the original debt from Chase Bank and all collections activity from the judgement must be stopped no matter how many times the servicing company of the debt has changed hands.
If you have received a summons from court regarding a debt owed to a creditor, you can contact Bankruptcy Law Professionals to learn more about your options on how to deal with this situation. A bankruptcy can stop all collections activity that could deplete your resources out of your bank accounts and wages. To find out more information or to set an appointment for a phone or in-person consultation, please call us at (855) 257 – 7671.