Law Office of Rick Morin, PC

Debt collection lawsuits in Sacramento are common. These lawsuits can be very unsettling. The consequences of a debt collection lawsuit can be enormous. Don’t worry, there are options.

Don’t Ignore a Debt Collection Lawsuit

The first mistake people make when they discover a debt collection lawsuit is to panic. Worse yet, many folks decide to ignore the lawsuit. This is the worst thing that you can do. The lawsuit is not going to go away on its own.

Collection Lawsuits Have Consequences

Debts taken to court are a very serious matter. The creditor is asking the court to issue a “judgement.” A judgement is a legal declaration that you actually owe the debt. With a judgement, a creditor can really make a mess of your finances.

Judgement creditors can garnish wages, levy bank accounts, and put liens on property. Many people mistakenly believe that a judgement creditor must first warn them before garnishing wages. This is not true! The legal judgement takes the borrower out of the equation. A creditor can take collection activity on their own (as long as they follow the law).

The bottom line is this: judgements are not good. You should avoid judgements at all costs.

You Have Options

As a bankruptcy attorney, I can tell you that you have several options if you are being sued by a creditor. One option is bankruptcy. Bankruptcy will stop your collection lawsuit and get rid of other debts. Bankruptcy can be the easiest and most cost-effective method of stopping creditor lawsuits. There are other options too.

Depending on the nature of the lawsuit, some people decide to defend the lawsuit. The debt may be too old to legally collect. The account may have been transferred among several creditors without the right documentation. Or maybe the creditor is not calculating fees and interest the right way.

I offer my litigation services to folks facing collection lawsuits. However, it typically only makes sense to hire an attorney if the amount of the debt is substantial, or if there are obvious legal deficiencies in the lawsuit.

If you are facing a debt collection lawsuit in Sacramento, please call my law firm at (916) 333-2222. We can help you discuss your options during a comprehensive legal consultation.