Stopping Lawsuits and Judgment Collection
Are you feeling helpless because someone you owe money to has filed a lawsuit against you? Creditors seeking to collect on credit card debts, payday loans, and medical bills file many lawsuits every day. Even though you are working hard to make the payments, you may realize there is no possible way to repay the debt. There is a strong temptation to ignore the lawsuit and not even show up to court. Don’t do it! This will only make things worse.
For many Georgia residents, personal bankruptcy is a very good option. Filing bankruptcy will immediately stop almost all lawsuits from moving forward. This is due to what’s called the “automatic stay.” The automatic stay is a legal protection that prevents creditors from continuing a lawsuit to collect a debt against a bankruptcy debtor.
How Does the Automatic Stay Work?
In bankruptcy, the automatic stay is like a restraining order that stops creditors from trying to collect a debt. It also stays (stops) lawsuits against you and prohibits creditors from filing new lawsuits. The purpose is to give debtors some breathing room from their debt problems while they come up with a plan to straighten out their finances.
The automatic stay also prevents a creditor from attempting to collect on a judgment from a lawsuit. That means you and your property are protected even if the creditor has already obtained a judgment against you, and regardless of whether you showed up at the court to fight the initial lawsuit or not.
What Makes Bankruptcy So Effective?
Congress created the personal bankruptcy laws to help individuals and families that are struggling with overwhelming debt. It’s very powerful because:
- Bankruptcy can stop judgments and lawsuits.
- Bankruptcy can protect your property.
- Bankruptcy can greatly reduce or completely eliminate your debt.
- Bankruptcy can give you a fresh start.
What Should You Do If a Creditor is Suing You?
If you’ve been dealing with stress and anxiety over your financial troubles for too long, and lawsuits are being filed to recover for money you owe to creditors, it’s time for professional legal help. The bankruptcy lawyers at Berry & Associates will review your situation at absolutely no cost to you. They can give you sound advice about options for filing Chapter 7 or Chapter 13 in Georgia. Then you can make the decision about what to do next to protect your home, car, and personal property.