Debt Relief: What to Do if Sued for Debt

If you need debt relief because you are being sued, you will need to assess your options quickly. Debt relief may be available depending on your circumstances and what you are willing to do. If you own a home, it is especially important to handle any lawsuit for debt promptly to avoid your assets being seized or frozen as a result of a later judgment in the case.

Dealing with Debt Lawsuits

When you are faced with a debt lawsuit, you need to take action to make sure you do not face further negative implications including asset freezing (think about your bank accounts) and wage garnishment. Enlisting the help of a lawyer may be wise. Some things you should consider in dealing with a debt lawsuit include:

• Filing bankruptcy automatically stays any creditor action. So, if you just need to buy yourself a little time, an attorney may recommend that you file bankruptcy to prevent the creditor from proceeding with the lawsuit.
• Your bank accounts could be frozen pending the outcome of litigation. This can be a problem for most people who only have one central bank account through which they pay all of their bills.
• If you are able to come to some kind of agreement with a debt collector to stop the legal action, then make sure you get the terms in writing and signed by someone authorized to make such an agreement.

Getting Legal Advice

If you are being sued because of a debt you cannot pay, discussing your case with an experienced lawyer is a good first step. An attorney will help you figure out whether or not the claim against you stands a chance and what your options are. You may be able to stop the lawsuit by taking certain legal actions of which an attorney will advise you.