Lawsuits and Judgments: Is it too late to file for Bankruptcy?
Receiving a lawsuit from a third-party collection agency is common for people who are in debt with credit cards, car deficiency balances, and personal loans. You might have not thought that a small credit card bill of $2,000.00 would come out to $10,000.00 or more. This is because third-party collection agencies add interest, attorney fees, late fees, etc. Some people tear the lawsuit or ignore being served, but it does not make the debt go away.
It can turn into a judgment which later can (usually not in Texas, but it can and does happen in Texas sometimes) get turned into a garnishment if signed by a judge, the longer you wait, the more options disappear. and the more problems arise. One way to avoid collection from these lawsuits and judgments is to file bankruptcy. But not all debts can be discharged in bankruptcy. Just some examples of some debt that is unable to be discharged are: child support, alimony, and debts incurred through fraud.
A bankruptcy attorney is able to determine whether or not a bankruptcy will benefit you regarding the lawsuit or judgment you have on your record.
For more information on bankruptcy and how it might help stop a lawsuit, schedule a free meeting with a bankruptcy lawyer from the Rashid Law Firm by calling us at 832-209-8833. We have our office at 10222 Gulf Freeway, Houston, TX 77034.