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Getting presented with a lawsuit of any kind is never easy. It’s often daunting and overwhelming for one person to experience. If you find yourself getting sued for unpaid debts, it is best to turn to a civil litigation lawyer before matters get worse. Debt concerns are increasingly common – and you have options. Read on to learn more about what happens if debts go unpaid.
Unpaid Debt: What Happens Next?
Across the board, Americans have been impacted drastically by the Covid-19 pandemic. It has affected people’s finances, household income, ability to pay child support or handle debts. When you first miss making a payment to rectify your finances, creditors are likely to try recovering the overdue balance immediately. Those who owe will likely get a notice in the mail.
Debt collection should be handled seriously, especially when you’re faced with family-related legal concerns like divorce. Credit is a typical example that drives a wedge between couples. If you’re over 90 days late on a payment, creditors can attempt collecting through an agency or law firm. There is no way around it, and it could end up getting reported on your credit report.
What Is a Collection Lawsuit?
Collection lawsuits occur when your creditor files a case against you in civil court. You’ll get a summons and a copy of the complaint disclosing what is owed and why you should be held responsible for payment. A civil litigator would encourage you to avoid holding off. The longer you wait to handle the lawsuit, you put yourself at risk of a default judgment.
When default judgments are set against you, your creditor will be able to ask the court to order wage garnishment or issue a bank account levy. Wage garnishment allows the creditor to pull funds directly from your paycheck until the debt is paid. Whereas a bank levy grants the creditor authority to take money from your bank account directly.
Settle Vs. Pay in Full
You have two options: paying the debt in full or making payments over time. Depending on your situation, it might seem plausible to make monthly payments until the debt is paid in full. The creditor’s goal is to resolve the lawsuit as soon as possible to avoid legal fees, court costs, or related expenses. The only time not paying the debt would be an option is if you don’t own anything that creditors can legally collect from you. Certain incomes like social security or unemployment benefits are not recoverable.
If you’re dealing with family-related legal issues, the last thing you should have to worry about is debt. You can always turn to our firm if you need a civil litigation attorney.
About The Law Offices of Nigel Burns
The Law Offices of Nigel Burns is a law firm for family issues, like those surrounding marriage, divorce, and adoption. These are personal matters, so it’s natural to become emotionally invested in your civil lawsuit; our attorneys can handle the legal process to minimize any stress that you may feel. Our attorneys are experts in civil litigation, ensuring that your lawsuit brings you the most favorable results. Our attorneys can help litigate:
- Restraining orders
- Divorce
- Child support
- Child custody
- Property division
- Trust and probate litigation
Our attorneys can also help you pursue compensation if you were in an accident and need to sue for damages. If you suffered a car wreck, bike accident, or were hit by a car as a pedestrian, we can get your personal injury lawsuit started. Our offices are located across greater Los Angeles, so accessibility shouldn’t be a problem. We’re also offering virtual services due to COVID-19. To see our full list of contact options, click here.