Collection Law Suit and You’re Options
If you have had delinquent credit card debt you may be facing a collection law suit or possibly a judgment. Many of these law suits come from debt buyers. Some of these debt buying companies include Midland Funding, Portfolio Recovery, and LVNV Funding. These are legitimate lawsuits and if they are not properly taken care of they can have damaging consequences.
For example, if a collection law suit is ignored, a creditor can receive a judgment and place a wage garnishment, lien on property and even possibly levy your bank account.
If you receive a summons and complaint regarding a collection law suit you have to respond in most circumstances within 30 days or face a default judgment. Most people do not respond because they do not recognize the law firm or collection company suing them.
Creditor Law Suit Options
- File an answer to the complaint: as stated above you have 30 days to file an answer from the time you were served the law suit. The answer will allow you to deny any of the claims and bring the matter to the court. There will be a filing fee (unless a fee waiver is filed.) Even if you file a response you still have to go through the court process before a decision is made as to whether you will be ultimately liable for the collection balance.
- File for Chapter 7 or Chapter 13 bankruptcy: A bankruptcy filing will stop the collection law suit in its tracts and will discharge the underlying debt. When the bankruptcy case is filed, the state court in which the collection law suit was filed will be notified of the bankruptcy stay and also notice will be sent to the creditor and their attorneys.
If there has been a judgment already in place or a pending garnishment we are still able to discharge the underlying debt and stop the garnishment. In many circumstances if your wages have already been garnished, our office can possibly retrieve some of those funds.
It is important not to avoid or ignore a collection law suit. Contact the Law Offices of Rami. Nabi for a free initial consultation and we can evaluate your options. Our phone number is (714) 202-6529.