Stopping Creditor Lawsuit Before It’s Filed

wooden gavelCreditor Lawsuit Summary Explanation

Sadly, if you have actually not paid your expenses and owe creditors, they eventually will require their money back, generally through a creditor lawsuit. If they are not paid it’s likely they will file a lawsuit and look for payment. If they win their case against you they might have the right to wage garnishments, savings account levies, or property repossession. However, this list may be limited by Tennessee state law or creditors themselves.

Fortunately, there are some ways for stopping creditor lawsuit before it’s filed. Here are some suggestions from Conner & Roberts, PLLC: 

Talk with your creditors

The first action to make for stopping creditor lawsuit before it’s files is to talk with them. Actually, prosecution and filing lawsuits against you for money requires time and effort. First, explain your situation to the creditors and think about creating some sort of a repayment plan.

Stand up for yourself

According to the law, everything should be proved. In our country, the creditor has a headache to collect the evidence and verify that you have the debt. Many things should be proved – the amount of money you owed, that the creditor is licensed to collect debts in the state you live in, that the statute of limitations has not expired on debt collection and so on. These things are not obligatory. Unless you insist.

Also, make certain to reply to the Summons and Complaint. If you do not react, the court will certainly issue a recap judgment for the lender. Not just can this include extra court costs, it could permit the creditor to use a range of collection methods to get the money.

To prevent a summary judgment ensure to provide an Answer to the court within the set period.  Request that the creditor verifies that they have standing to sue, request only original documents and a balance on the financial debt. Moreover, ask the creditor to prove that the statute of limitations has actually not run out.

If the creditor can prove all these things and is going to win the case, there are still steps you could take to protect certain assets. For more details, ask for a professional legal help from a local attorney.

File for bankruptcy

Filing for bankruptcy under Chapter 7 may stop the lawsuit if a creditor gets a judgment against you.

Whether your bankruptcy will discharge a lawsuit judgment depends on:

  • the type of debt the judgment is for, and
  • whether the judgment creditor has already placed a lien on your property.

However, make sure you’re working with an experienced Chattanooga bankruptcy team. Always check the info about the company and testimonials to make the best choice. To make sure this alternative will work for you, do not hesitate to contact us today.

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