Hello I’m Joseph Vacek the bankruptcy attorney here at Bailey & Galyen. Today we’re going to talk about what happens when a debt collector files a lawsuit against you.
Well, there are a couple of steps. The first one is you’ve been served with a citation and you’re told you need to file an answer. Can bankruptcy help me at this point? Yes! The bankruptcy when you file it whether Chapter 7 or 13 put’s in what’s called an automatic stay. Which imagine is like this wall that comes down and stopes everything from happening. That’s the collection of your debts, that’s also the prosecution of a lawsuit.
If the answer date has already expired you may have a default judgement taken against you against you at which the debt collector may try to execute that judgement. A a couple of ways that they try to execute it is 1. they will ask to garnish your bank accounts and 2. They will send you post judgement discovery and that discovery will ask what assets you may or may not have. It’s quite long and they can pretty much ask whatever they want. Bankruptcy puts an end to that. So even if you have a judgement against you or if you have pending post judgement discovery come talk to us we can help resolve this. Either through Chapter 7 by wiping it our, or through a Chapter 13 in which you can resolve that debt over 3 to 5 years.