Bankruptcy can resolve most lawsuits by stopping them from proceeding against a debtor.
If you have been served with a credit card lawsuit, a bankruptcy can stop it. Once the petition is filed the Plaintiff credit card company must stop the lawsuit. Sometimes debt buyers and collection agencies bring these lawsuits hoping that you will simply call and make some sort of unfair payment arrangement. Generally it is not in your best interest to settle these debts because the IRS will send you a 1099 and treat the forgiven portion of the debt as income if you are not insolvent at the time the debt was forgiven. Keep in mind that if you do not file an answer to the lawsuit the credit card company will take a default judgment against you and may later seize your non-exempt assets and/or garnish your wages. Filing for Bankruptcy can protect you from these types of creditors.
In some cases, going to court against the creditor may be the better option if you have defenses against the creditor’s allegation. Every lawsuit and situation will be unique, which is one reason why the counsel of an experienced NY attorney can be so critical. After a consultation, if you have determined that filing for bankruptcy is your best option for answering a creditor lawsuit, bankruptcy attorney Stephen K. Underwood can help. For more than twenty years, I have provided effective bankruptcy assistance to clients in the Buffalo NY area, and all of WNY.
You must respond promptly to creditor lawsuits in NY, or a judgement will be entered against you. You have twenty days to respond to a creditor lawsuit in NY. That’s just enough time to get the advice you need. If you declare bankruptcy in response to a creditor lawsuit, the lawsuit is stayed as soon as you file the bankruptcy petition. If you’re being sued by a creditor in the Buffalo NY, get the legal advice you need without delay. Contact an experienced Buffalo debt relief attorney by calling me at 716-656-7676 as quickly as you can.