You are probably here because you have been served with a credit card debt summons. The summons gives you information about what you need to do. A consumer debt is any obligation, or claimed obligation, of a consumer to pay money arising out of a transaction that occurred primarily for personal, family, or household purposes. And, an unsecured creditor usually doesn’t file a relief motion, as the process is costly, and the profit margin for an unsecured creditor is not much! She does not have a car loan. If the creditor wins the lawsuit, you might be able to get rid of the liability in bankruptcy—but not always. The lawsuit will go forward with or without you appearing in court and if you’re not there to defend yourself, the … The benefits of debt consolidation, as of how it helps to stop a lawsuit: Debt consolidation can’t stop a lawsuit! It is normal to see that spelled out contractually and in the terms agreed to when we take out loans. Past the burden of evidence, you have another legal requirement that you can use to defeat a debt collections lawsuit: the statute of limitations. … In fact, facing a possible judgment or receiving one in a debt collection case is often why you might decide to file for bankruptcy. You certainly have a good shot of beating the lawsuit. How to Protect Your Assets From a Lawsuit or Creditors Measures that help you keep your assets safe. When a debt collector contacts you about a consumer debt, pursuant to the Fair Debt Collections Practices Act (FDCPA) you have the right to instruct the debt collector to refrain from any further contact. Filing Bankruptcy can STOP new or already-filed lawsuits instantly as well as wiping out other debt, preventing eviction, foreclosure, bank levies and vehicle repossession. The Dirty Secret of Lawsuit Factories Recently the Consumer Financial Protection Bureau filed a lawsuit against a Georgia law firm, Frederick J. Hanna & Associates , accusing it of churning out 350,000 law suits since 2009. If you do not pay your bills, a creditor may file a lawsuit against you. It sounds scary (and it can be), but if you understand what’s coming and prepare yourself appropriately, a creditor lawsuit doesn’t have to be a terrifying experience. In order to start a lawsuit, the creditor will file a complaint in court. These most often occur if a creditor has filed a suit against you for non-payment of a debt which may lead to the creditor garnishing your paycheck. Other creditors will also be barred from filing lawsuits as well. Stop Credit Card & Bank Lawsuits Debt Relief to Get Your Head Above the Water. Remember, debt settlement involves negotiating with the creditor. If you’ve already been served, don’t ignore it. I’m not saying its bad to pay off your mortgage and own it free and clear, however, it is just plain naive to pay off your home and not realize you are seriously exposing yourself to a loss. When you go past due on a credit card, the worst threat a creditor can make is that they will sue you. A collection lawsuit occurs when a creditor files a petition with the court to begin a lawsuit against a consumer who owes them money. A judgment is a court order that confirms that you owe a creditor a debt. A judgment wont guarantee that the creditor will be paid because he still has to hunt for your bank accounts and assets -- but if he knows where they are they can apply to seize them. How long ago you stopped making payments on a debt can cause a large discrepancy in the balance you remember owing, and the amount they are suing for in court. If you start receiving letters from a creditor, respond to them as soon as possible – ideally, before you’re served with a lawsuit. Free Phone consult 714 … There are a number of ways creditors can take action against you when you owe them a debt, including garnishing wages, repossessing your car and personal property, putting liens against your home, and even filing a lawsuit to collect the outstanding amount. Once your creditor has a default judgment because you did not respond to the lawsuit, or a judgment because the lawsuit was successful, they can ask the court for a wage garnishment order or a bank account levy. Any lawsuit can be settled before trial, and credit card collection lawsuits are no exception. This may be as bad as it ever gets, but there’s a chance your creditor or the debt buyer could decide to take you to court. Stop Creditor Lawsuits - Served a summons? A debt collection lawsuit is a civil lawsuit (not criminal). So, for the collection attorney to be able to get a live witness from the original creditor is VERY DIFFICULT. It’s easier for the creditor to avoid the risk and expense of a trial, especially if it knows you’re planning to offer a defense. If that is the case, you are in the right place! If you're served with a lawsuit from a credit card company or collection agency, you must act quickly to answer the lawsuit or you may lose by default. If you are sued by a credit card company, then you should begin planning your defense right away. That is why it is important for you to know what assets can be seized by a judgment creditor. The creditor will serve you with court papers called a summons and a complaint.. After winning a lawsuit against you, your creditor will likely file a Motion for Examination of Judgment Debtor. Read the complaint. Even if you have been notified by your bank of a bank levy, or notified by your employer that your wages will be garnished, etc., your filing for bankruptcy will immediately stop all of this. You can stop lawsuits with bankruptcy even after you have been sued. If by "7 year old credit card debt," you mean that the debt was in default 7 years ago, then you should never have been sued in the first place and you should have a complete defense. Despite provisions of the FDCPA however, many debt collectors still employ illegal and harassing practices including threatening legal action.