Debt Lawsuit: How Do You Deal With It?

When creditor phone calls start to flood in, it is a constant reminder that you have fallen behind debt payment. They make the calls not simply to remind you to make payment. Their goal for every call is to put a little bit more pressure on you to pay the debt you owe them. But the phone calls and perhaps even follow-up emails are all part of the initial stages of the debt collection process that most companies follow. However, if the creditor feels that you don’t have any intentions of paying the debt soon, they resolve to take further action and file a liability lawsuit.

The Lawsuit and The Judgement

If you fail to pay your debt, the phone calls will not stop for weeks or even for months. And then, you’d be surprised because they will stop making calls and you will think that they eventually forgot about you. This is where you are wrong. In fact, when the creditor stops making calls, you should become more afraid of the next steps they decided to take. The phone calls and emails of reminders only end because the creditors have decided it is time to file for the lawsuit.

Voluntarily paying for your debt or making payment arrangements with the creditor are the two things you can do to avoid a debt lawsuit. However, if you fail to negotiate the amount you owe them, your creditor can only file the lawsuit, prove that you owe them some money and get the court to give you judgment that will favor them in more ways than one. The lender must be able to secure a money judgment that will allow them to collect money from you.

How can creditors receive payment after judgment?

  • Charge To Wage. With the money judgment issued by the court, they can deduct a percentage of your salary to have it paid straight to the account they make. Such payments will then be deducted to the total amount you owe them.
  • Bank Levy. Creditors can get the bank to surrender all the savings that you have left in your account. The money will then be deducted from the payment of the debt you owe.
  • Personal Property Levy. Creditors will have the right to seize all private property that they consider valuable like your car, your house or any other real estate property you may own. Jewelry and other valuables are included too.
  • Till Tap Keeper. The judge can order the sheriff to intercept all payments made to your name.

Don’t be a victim of any debt lawsuit. If you are having problems managing debt payment, ask a lawyer’s help. They will know what to do to help you get out of the mess. More importantly, they can ensure that you don’t let yourself in such problem again in the future.

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