So You’re Being Sued? Here’s How to Stop It.
You hear the knock and the door and the next thing you know you are being handed legal papers, and then it hits you – you’ve been sued. Getting served with a lawsuit is an intrusive and unnerving experience that can leave you feeling helpless and unsure of what to do.
Under Arizona law you have twenty (20) days from the day you received the lawsuit to submit a written response to the court. It is best not to ignore the lawsuit. If you don’t submit a written response the court can enter a default judgment against you – and once a creditor has a judgment against you they can do all sorts of terrible things like garnish your wages or bank accounts, seize assets, or even place a lien your property.
Bankruptcy Will Stop the Lawsuit
If you have been served with a lawsuit it is important to meet with a bankruptcy attorney as soon as you can to discuss your options. In some cases it may be best to file a response and deal with the matter through the court system. In other cases, especially if you owe the debt but don’t have the money to pay it, it is helpful to know what your bankruptcy options are prior to making any final decisions.
In bankruptcy, as soon as your case is filed with the bankruptcy court, an Order is entered that stops all collection efforts against you. This means that not only will your creditors not be able to call you on the telephone or take any of your property; it also means that the lawsuit you were just served with must stop and the underlying debt will be discharged/eliminated through the bankruptcy process.
But what happens if you didn’t respond to the lawsuit and now they have a judgment against you? Bankruptcy can still help. Filing bankruptcy can void the judgment entered against you and it will discharge/eliminate the underlying debt.
If you have been sued give me a call. I offer a free bankruptcy consultation where we can discuss not only how a bankruptcy can help your situation but we can discuss non-bankruptcy options as well.
Arizona bankruptcy attorney John Skiba can be reached at (480) 420-4028 or via email at email@example.com.