Lawsuit Actions
Creditors often will file a lawsuit if a borrower fails to pay a debt as required by the credit or loan agreement. Usually the creditor will succeed in obtaining a judgement against the borrower. After the judgement is obtained, the creditor is then allowed to seize bank funds or garnish earnings to pay the debt.
Chapter 7 bankruptcy and Chapter 13 bankruptcy puts an end to lawsuits and other collection actions. In most cases, the creditor will simply dismiss the pending lawsuit when notified of the bankruptcy filing.
If you have questions about the available bankruptcy remedies when facing a lawsuit in the Algonquin, IL area, call us of a free consultation.