Creditors are increasingly turning to the courts by filing debt lawsuits as part of their debt collection efforts and suing those who owe instead of working out a reasonable solution to the problem. If you are the target of a debt lawsuit, do not ignore your responsibility to respond – it can cost you in a number of ways, and impact your life for years to come.
- A default judgment may be issued if you fail to respond to debt lawsuits a creditor files against you, creating a court-enforced mandate that you pay the full amount owed. You may be ordered to pay your creditor’s legal fees as well.
- If a judgment is issued and you fail to meet the terms imposed by the court for repayment, the judgment creditor has a number of options to collect money from you. They can seize your property and others assets not protected by statute, garnish your bank account, or if you do not respond to a subpeona of records have a judge issue an arrest warrant.
- You may be ordered to appear in court as a result of the judgment, to present information about your assets and ability to pay. If you don’t comply with the court order, at that point the judge can issue a warrant for your arrest.
- A judgment on your credit record not only impacts your credit score, it can restrict your ability to rent an apartment, get certain types of student loans, buy a car or a home, or make other purchases that require acceptable credit.
- A creditor lawsuit that ends in a judgment against you can also impact your ability to get a job, as more employers now require background and credit checks as part of the hiring process.
- If a debt lawsuit has been filed against you it’s important to act quickly, preferably before the matter goes to court. Legal representation is essential to a positive outcome, and we believe that all Texas consumers deserve access to a lawyer they can afford, regardless of their financial situation. For this reason, we offer convenient payment plans that will allow you take care your legal fees over time, and in the manner that best fits your budget.
Our legal team will vigorously defend you against any debt lawsuits filed by your creditors and if a lawsuit has been filed we will immediately begin working to get it resolved. Our attorneys and paralegals are skilled negotiators with a long track record of resolving debt lawsuits and backing down aggressive creditors.
When you hire the J. Gannon Helstowski Law Firm for a Debt Lawsuit:
- An attorney and paralegal will be assigned to your debt lawsuits case. Work will begin immediately and we will keep you informed of our progress. We do not waste time with form letters hoping a creditor responds. We will contact your creditor directly, and begin negotiating favorable terms to end the lawsuit and resolve your debt.
- Creditors and debt collectors will no longer contact you. Once you hire an attorney, the law states that creditors and their debt collectors must speak and deal only with your attorney. This means those annoying collection phone calls will end, and no more threatening letters will be sent to your home or business.
- If you have garnishments or liens, we will quickly address them. If the creditor has filed a bank garnishment or Texas Receivership against you, we will immediately begin working to have it released. We will negotiate with the creditor on your behalf and resolve the situation as soon as possible.
- We will help you create an effective hardship letter. Our legal team will work with you to create a hardship letter that documents the reasons why the creditor should drop the lawsuit and consider your personal circumstances, allowing you to begin a payment plan or settle the debt for less than the amount originally owed. A good hardship letter gives details of a job loss, divorce, medical issues, or other events out of the ordinary that inhibit your ability to pay the full amount due.
- We will make sure your credit report lists the debt paid in full. Once the debt is resolved, credit-reporting bureaus are required to note the debt as paid in your credit report. That does not always happen, however, so we will monitor your credit report for accuracy, and ensure the correction is made to your credit file if an error exists.
- Your rights will be protected. If we discover that a creditor or debt collector has taken actions against you that violate consumer protection laws, we will use every legal means required to address the situation. We can even file a lawsuit on your behalf if necessary.
If you do wish to sue or counter-claim your creditor and we feel this step is necessary, we will discuss the process and any additional costs with you before moving forward. We will also review extended payment options in this circumstance, including discounts for clients who require assistance with more than one type of legal issue