Have you been sued by a creditor or debt buyer? Being served with a debt lawsuit is often a shocking and unpleasant experience. It’s also increasingly common.

In the past, litigation was cumbersome and expensive. Creditors would only sue on substantial debts. But with the implementation of electronic filing and an increase in the number of collection attorneys, creditors are now suing debtors on smaller debts.

If you were served with a debt lawsuit, don’t ignore it. In most cases, you need to respond in a short period of time to preserve all your rights.

How Can I Fight a Debt Lawsuit?

Defending against a debt lawsuit is essential. You may be able to assert defenses to the lawsuit, file counterclaims against the plaintiff, or raise objections to defend against the case.

If you ignore the lawsuit, the plaintiff is likely to get a judgment against you. If a creditor secures a judgment against you, they can garnish your wages, levy your bank accounts, and file liens on your assets.

Judgments also accumulate interest at 10% per year in California. What started out as a relatively small judgment can quickly grow when interest is added.

Bankruptcy May Help

Filing bankruptcy stops debt lawsuits. Chapter 7 bankruptcy fees are approximately the same as the fees for defending one debt lawsuit. If you have multiple debts, it can be much more cost effective to file bankruptcy than to fight a debt lawsuit.

Bankruptcy also offers a more predictable result. Even if you defend against a debt lawsuit, you could still lose and be required to pay the judgment. Bankruptcy, on the other hand, usually stops debt lawsuits immediately and discharges the debt.

However, bankruptcy is not the right or best option for everyone. When you contact California bankruptcy attorney Karen Ware about your debt lawsuit, she explains all your options during your free phone consultation.

Schedule a Free Consultation

To schedule a free consultation with Karen Ware, call 805-284-0760 or 818-668-9019 or use our online scheduling tool.