When you are behind on a debt, one of the options your creditors have is to go to court and seek a judgment against you. If this occurs, the creditor may place what is called an “involuntary lien” on your home. One of the important things that consumers must be aware of is that if a creditor is threatening to take them to court, the court summons to appear should never be ignored. By simply not showing up in court, you are going to lose your case and the creditor will be granted a judgment.
Statute of Limitations Defense
Consumers should also be aware that there is a statute of limitations that states how long a creditor has to collect on a debt. The time limit is six years from the time you have made your last payment. Generally, creditors will take legal action long before this time and the outcome could be a lien. However, you can stop that from occurring by filing Chapter 7 bankruptcy.
For a free legal consultation, call (770) 792-1000
How can Chapter 7 bankruptcy help?
When you meet with a Marietta bankruptcy attorney, you will be providing them with a complete list of all debts that you owe. Once the debt schedules are complete and the filing occurs, all creditors must cease and desist any collection actions until such time as the bankruptcy court hears your case. This means if a creditor has started a court action, the bankruptcy filing will stop that filing thereby preventing the creditor from winning a judgment against you. Keep in mind, even if you do not pass the means test, Chapter 13 will provide the same benefits.
Time is of the essence
One thing that is crucial to remember is if you are notified by a creditor that they plan to pursue legal action, time is of the essence. Generally, there are only a few days between being notified of a court hearing and the date you actually have to appear. Immediately upon receiving a notice you are being sued by a creditor, consider contacting a Marietta bankruptcy attorney for immediate assistance.
Keep in mind, creditors are going to utilize any means necessary to collect a debt and one of the options they have available to them is to place a lien on your home of they win a judgment against you. Often, debtors ignore these notifications because they feel there is nothing they can do to stop a creditor from winning a judgment against them.
The bankruptcy code is in place to assist debtors who find themselves overwhelmed in debt after a long period of unemployment, following an illness or after a divorce. Too often, people believe that filing bankruptcy is not the right thing to do but frequently, it may be the only way to get back on sound financial footing. Consumers should feel that filing bankruptcy is a sign of a person who is irresponsible, in nearly all situations, this is not true.
If you are concerned a creditor is going to pursue a judgment against you for a debt, contact the Law Offices of Roger Ghai, a Marietta bankruptcy attorney at (770) 792-1000 immediately. We can help you stop the court proceedings against you and ensure that your home is not subject to a lien by preventing the creditor from obtaining a judgment.