If your bills go unpaid for long enough, creditors have the right to file a lawsuit against you and secure a judgment, which legally compels you to pay. If their lawsuit is successful, the law provides several tools that enable your creditor to collect, including garnishing your wages and obtaining assignment orders. Fortunately, as the bankruptcy attorneys at The Gil Law Firm in Dothan, AL note, there are many steps you can take to stop a creditor's lawsuit:
- Start negotiating. Many creditors would rather accept a negotiated settlement amount than go through the expense and trouble of a lawsuit. A bankruptcy lawyer will be able to help you negotiate a payment plan or settlement terms that work for you and stop any wage garnishment or foreclosure activity.
- Understand what's exempt. Just because a creditor has an assignment order doesn't mean they can simply seize your belongings. In most states, many of your personal belongings, public benefits, primary transportation, and much of the equity in your house and car are exempt. An attorney will help you figure out what is legally protected and how to formally claim an exemption.
- File for bankruptcy. In some cases, you may have no other choice than to file for bankruptcy and get a second financial chance. After taking a careful look at your financial situation, the attorneys at The Gil Law Firm will be able to determine whether bankruptcy is right for you.
Visit their website to learn more or call The Gil Law Firm at (334) 673-0100 to schedule a consultation today.