If your finances have been suffering for a long period of time, you have no doubt been served by creditors. Although this may be somewhat of a nuisance for you, creditors are just trying to get back the money they are owed, and this can be inconvenient for you.
Being served is frightening, as is any legal action that is being pursued against you. If you are suffering from extreme debt, have you looked at all of your options? Though it may have already crossed your mind, filing for bankruptcy might be the best way to avoid being sued by a creditor.
Once you have decided to do this, what’s next?
But what if you decide to file for Mesa bankruptcy after you get served? Should you still answer to the summons and complaints that are being served to you by a local Arizona process server? More importantly, will filing for bankruptcy stop a creditor lawsuit after you have been served?
If you have been served with a lawsuit by a creditor, filing for bankruptcy, whether it is Chapter 13 or Chapter 7 Bankruptcy, can stop the lawsuit and release you of any obligation to pay back the debt you owe. This is called an Automatic Stay, and it goes into effect the moment you file for bankruptcy. Its essential purpose is to prohibit creditors and debt collectors from pursuing their collection activities, and luckily that includes lawsuits.
If you have already been served, that means that the creditor who has filed the lawsuit against you cannot proceed without first getting permission from the bankruptcy court. But the important thing to note is the difference between a creditor and a credit card company. While the creditor may ask the court to lift the stay, the credit card company typically has no legal ground to do so.
Once you file for bankruptcy, the court will proceed and you may receive a bankruptcy discharge. If you receive a discharge, that means you are free from personal liability for the unpaid debt. However, if your case is dismissed without a discharge, the creditors and credit card companies seeking a lawsuit are able to continue their pursuit from where it left off before you filed for bankruptcy.
If you obtain a discharge, however, there many things that are not dischargeable and that you will continue to be responsible for. This includes child support and spousal relief. So before you jump for joy that you don’t have to pay back any of your debt, make sure you consult with your Mesa bankruptcy attorney to get every detail of what your bankruptcy will provide you.
Should you still answer the summons and complaint if you plan on filing for bankruptcy?
The short answer is yes. Absolutely you should. If you don’t answer, then it will result in a default judgement which could lead to wage garnishment and attachment of your bank accounts. Having your wages garnished can be financially devastating on your month to month living, as they can be reduced by up to 25%. So your best course of action is to answer the summons and complaint even when you plan to file for bankruptcy. That way you can avoid any missteps in the future.
If the creditor has already begun garnishing your wages after your discharge, the bankruptcy lawyers at Mesa Bankruptcy Lawyers can help put this to an end, especially if they fail to adhere to the Automatic Stay. Once your bankruptcy is filed, they are obligated to stop any and all wage garnishments, and return any wages to you that were taken after the filing. Contact a qualified bankruptcy attorney to help you.
If you have been served by creditors seeking debts they are owed, and wish to file for bankruptcy protection to help regain your financial stability, consult with the attorneys at Mesa Bankruptcy Lawyers. We offer expert legal counsel and aid for those seeking financial asylum and protection under Chapter 7 bankruptcy or Chapter 13 Bankruptcy. Declaring bankruptcy after getting served by creditors is by far your best course of action to avoid long term financial strain. Consult with one of our bankruptcy lawyers today to learn more.
Published By:
ASAP Serve, LLC
1837 S Mesa Dr C102
Mesa, AZ 85210
Office: 480-821-1552
Email: [email protected]
Mesa Bankruptcy Lawyers
4065 E University Dr #500
Mesa, AZ 85205, USA
Phone: 480-470-0005
