What to do if a creditor sues you in New York City?

With the economy the way it has been and now that the credit card companies and banks have gotten wise to schemes of the debt consolidation companies, more creditors are suing to collect unpaid debts than ever.  They are less willing to write off losses as a cost of business, and are coming after consumers like never before.

If you get served with a law suit don’t panic.  Consult with a qualified attorney that works in the area of debt relief to look over the complaint to see if the creditor even has a legitimate claim against you.  You may have a valid legal defense, or the lawsuit may be entirely frivolous and unfounded, or based on incorrect facts.

If the creditor has a case against you, your attorney may advise you to start considering the benefits of bankruptcy.  If you are underwater on your bills already and drowning in debt as well then getting sued is usually the last step, or the wake up call, that pushes people towards filing for bankruptcy.  When the process server shows up at your door it is easy to panic and to start thinking about the next person that will come for all of your stuff.

Fortunately, filing for bankruptcy will immediately stop any and all collection attempts from your creditors, and if you are being sued already there are big advantages to filing for bankruptcy before responding to the lawsuit.

When you file for bankruptcy an “automatic stay” goes into effect that prevents your creditors from making any attempt to continue to collect on the debt you owe them.  They cannot call you, email you, send you mail, levy your accounts or garnish your wages.  What’s more, if that pestering collections agent continues to call you (which they often do) we can prepare you on how to appropriately document the conversation so that we can turn the tables on them and sue them for continued communication during the automatic stay.  This is a big violation that happens all the time, and when it can be proven you will not only eliminate your toxic debt from the shady lenders, but you will also get a judgment against them as well.  If they don’t recognize your legal protections under bankruptcy law, a good bankruptcy attorney we will be all over them with a lawsuit of their own.

We know how urgent it is to quickly resolve any pending lawsuits you may be facing in New York City.  If you are being sued by a creditor please call the Law Offices of William Waldner at 212-244-2882 to arrange a free bankruptcy consultation today.  We will immediately get the creditors off your back, eliminate your toxic debt and work with you closely to get you on the road to financial well being.

This article is intended for educational purposes only.  By reading this article no attorney-client relationship has been created.