A creditor lawsuit is one where the lender sues the person in debt for not repaying the amount owed as per a signed agreement. It can happen when you, the person in debt, has some form of asset or source of income that the lender can get their hands on. If you, for example, have a salaried job where you get paid every month, a creditor lawsuit can be placed against you. If you face such a lawsuit, the below information can be useful.
The process starts with you not being able to repay the loan as you promised, you will be given a notice and you will have to respond. If you do not, this can lead the lender or the collector into filing a lawsuit. A judge might allow the collectors to take money from your income, in part. Ideally, you must respond with a defense. That is how it creditor lawsuits work, but there are ways in which you can save all, or most of your income from being forcibly taken from you.
If you get served for an old debt, there might be a way out of it. There are a specified number of years within which they have to act, or it automatically becomes null. This period is the ‘statute of limitations’ and varies between states and types of debts. If it has exceeded this time limit, you may get out of the lawsuit.
Another common issue is when debt collectors come knocking at your door for money. In such cases, debt buyers buy debts from lenders like banks on the cheap and start collecting. When faced with a collector’s lawsuit, you need to make sure that they have all the paperwork and not just a part of it. That is the first line of defense against collection agencies as they are unlikely to ever actually have all the necessary paperwork.
If collectors do get a judgment against you from the courts, it is within their rights to collect through property levies, wage attachments, assignment orders, and such methods. Contact a bankruptcy lawyer in Dayton OH to stop creditor lawsuits right away.