lawsuit Tag

16 Oct If You Are Sued, Don’t Just Call The Creditor – You Need To Take Action On The Suit.

This week I have talked to several people who have said that when they were sued they "called the creditor and worked it out so they didn't have to attend the hearing" but it turned out that a judgment was entered against them anyway. If you are sued by a creditor, you must understand that the neither the creditor nor the creditor's attorney is on your side. While it may be true that they will work with you on a payment plan, that doesn't necessarily mean that they stop the lawsuit. While they are "working it out", they may also be asking the court to place a judgment lien on you, which can be a lien on any real estate you own such as your house., and it can also be the basis for seizure of other personal property or bank accounts to satisfy the debts. In some states, the judgment can lead to garnishment of wages.
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30 Jun Can A Creditor Garnish My Paycheck?

Well, yes and no. Yes, a creditor can garnish, but no, they can't just start garnishing without going through a series of steps first. The first thing that has to happen is the creditor has to file a lawsuit. (There are two exceptions to this first step--the IRS and Student Loan Creditors). You have to be served with the lawsuit and you have time to reply to the lawsuit with any defenses you might have. If you defend and lose, the creditor will ask for a judgment. If you don't respond, the Creditor will ask for a judgment. Either way, the creditor must have a judgment before Step Two.
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