Warning Sign That It May Be Time to Consider Bankruptcy: Being Sued by a Creditor

For many folks struggling with paying bills, one of the first tell tale warning signs of financial instability is being sued by a creditor. Even then, many believe they can work something out ... until they realize how much more powerful a creditor becomes once they file the lawsuit ...

If you're like most people, you may not know what to do or how to respond. Here's what happens if you decide to do nothing:

§ Failure to appear may result in the issuance of a "body attachment," an arrest warrant for contempt of court.

§ Failure to appear will result in the Plaintiff taking a judgment against you by default.

§ Failure to appear will result in the issuance of a second Summons called the "Citation to Discover Assets" and/or a "Third Party Citation" issued to your employer (so they can start garnishing your wages; 15% of gross) and your bank (so they can freeze your bank account for up to double the amount you owe).

§ Once a judgment has been entered against you, the Plaintiff has 7 years to collect the debt + interest at 0.75% per month + attorney fees and court costs.

§ If the creditor has not collected in full during the 7 years, the Plaintiff can request an extension of another 7 years and can request an extension two times – the Plaintiff has 21 years to collect the judgment amount.

The bottom line is this debt is not going to go away.

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