So, some nice guy has showed up and served you with a summons. Go ahead, take a look at it. Look carefully, there will be a date on there, which is either the date that you need to show up at court or the date by which you need to file an answer.
What happens if you don’t file an answer or appear in court on the date in your summons? The plaintiff is going to get a default judgment. Doesn’t sound like a big deal, right? It is. As soon as the creditors gets that judgment, it is going to start executing on it. That same day, it is going to file a writ of garnishment, so it can start getting part of your paycheck – 25% of your take home. If it knows where you bank, it is going to file another writ, and the bank will have to hand that money over. Finally, it is going to record a transcript of judgment. If you own real estate, you won’t be able to sell it until you and the creditor settle up. I haven’t even mentioned the effect the judgment will have on your credit record.
Want to avoid having your paycheck garnished? Don’t ignore the letters and summons that I send you. Give the creditor’s attorney a call. Make an offer to settle or make payments. Before the date on the summons. If the creditor gets judgment and starts garnishment, it is probably not going to release it so that you can make smaller payments. A bird in the hand, right?
What’s the Golden Rule in litigation? Don’t ignore it. Don’t ignore those letters. Don’t ignore the summons. Talk to the other side. Default judgment can have some very intended consequences. If you don’t know what those are, find out. Do some research. Call a lawyer. Or be prepared for those consequences.
Talk To A Colorado Bankruptcy Lawyer About How To Stop A Creditor Lawsuit
Want to stop collection altogether? Call a bankruptcy attorney. The second you file bankruptcy, your creditors have to stop all collection activity, including phone calls, lawsuits, and garnishments. Bankruptcy is just about the only way to make that happen. If you have questions about bankruptcy, we hope you’ll come in for a free, no-obligation consultation with an experienced bankruptcy lawyer. You can call 303.331.3403 or use our online scheduling system to make an appointment.