Phone Calls and Lawsuits
When debt starts to mount up, you will likely begin receiving collection letters and or phone calls from creditors or collection agencies. Then the creditor or the collection agency can file a lawsuit against you in Circuit Court. You will then have to appear before the Judge, and in most instances that Judge will issue a judgment against you for the amount owe plus interest, court costs and attorney fees. Once a judgment is entered, your wages, bank accounts and other assets can be garnished. In some instances, the creditor will place what is called a “judgment lien” on your property, meaning you cannot sell it until the judgment is paid.
If you are sued and a judgment is obtained against you, a garnishment can be issued against your wages, bank accounts or other assets. If your wages are garnished, 25% of your take home pay will be taken from your paycheck to be paid toward the judgment. The garnishment will continue to take 25% out of every check until the full judgment is paid. If your bank account is garnished, 100% of the funds in the account will be taken with no warning. Both these scenarios can create a serious financial hardship. Ideally, you should talk to an experienced bankruptcy attorney before you are garnished.
Being behind on mortgage payments will very quickly cause your mortgage lender to file papers in Court to foreclose on your home. After notice to you, public notice in the newspaper, and a short waiting period, your lender can legally sell your house on the Courthouse steps to the lowest bidder. You will then be evicted from your home in a very short period of time. Although some mortgage companies offer loan modification programs, very few mortgage loans are actually modified. But if you want a loan modification, filing a Chapter 13 bankruptcy may help you in that process.
All of this action that your creditors can take is very stressful on families. If you do nothing, the problem will continue to grow. But you have options! We can help you get a fresh start, and take control of your finances – call us today!