First and foremost, do not ignore the lawsuit. If you ignore the lawsuit, the creditor will eventually get a judgment against you regardless of the validity of the claim. Courts may also award interest, attorney’s fees, costs, and costs for your failure to respond. Once a creditor has a judgment against you, they can garnish your wages, levy bank accounts, seize assets, and potentially garnish your tax return. Also, once the judgment is entered, it can be very difficult to undo the judgment. Your opportunity to fight a creditor’s claim is in the court at the time of the filing of the lawsuit. In Utah just because you refuse to sign a letter or summons does not stop the lawsuit. I have seen a creditor serve a client through social media.
Upon receipt of a lawsuit you should work to resolve the claim. If you dispute the debt, then you should immediately send a letter requesting verification of the debt. If you are unsure what to do, you should immediately contact an attorney to discuss your options. While my work as an attorney consists primarily of filing bankruptcy for my clients, I ask all my clients the same question, do they need to file bankruptcy? Some of the factors to consider when deciding to file a Utah Bankruptcy are:
- Are you being garnished?
- Are you facing foreclosure?
- Can you afford to pay back the debt?
- Do you have any disposable income to settle the debt?
- If you followed a strict budget, could you resolve your debts?
- Are you living paycheck to paycheck?
- Would filing for a Utah Bankruptcy solve your financial problems?
Depending on your answer to the above questions, a Utah Chapter 7 Bankruptcy may be the right options for you.
Please call me today at (801) 432-8682 to discuss your specific situation and how Bankruptcy may be right for you.
