When you can’t pay your debts, your creditors can take legal action against you to recover the money you owe. Your creditors will often file a lawsuit against you. If your creditor obtains a judgment against you they will be able to take action to enforce that judgment. This can include wage garnishments or seizing money from bank accounts.
A default judgment is a ruling the court hands down when someone fails to respond to a lawsuit. This ruling is automatic and usually results in a monetary judgment for the full amount owed in addition to other costs. If you receive notice of a judgment you have a few different options. These options include:
- Pay the balance in full;
- Work with the creditor to settle the debt or work out a payment plan;
- Allow the creditor to seize assets in payment of the debt;
- File for chapter 7 or chapter 13 bankruptcy
Receiving notice of a judgment might be scary, but don’t panic. If you have received notice of a judgment you should speak with a bankruptcy attorney about your options. Filing a bankruptcy can help discharge certain debts and provide relief from collection activity. In most cases, bankruptcy can discharge debts for which a judgment has been obtained. There are certain exceptions, but in most cases, these debts can still be discharged. A bankruptcy attorney will be able to advise you of your options and the best path forward.
CALL NOW FOR A FREE STRATEGY SESSION FROM AN MN BANKRUPTCY LAWYER AT LIFEBACK LAW FIRM
If you are dealing with an overwhelming debt problem, it is important to discuss your options with a bankruptcy attorney. If you have questions about bankruptcy and would like to do a free consultation to go over your options, visit www.lifebacklaw.com to speak with an attorney. You will be glad you did!
