Bankruptcy or Judgement? - By: Kelvin Hickman

[title]BANKRUPTCY OR JEDGEMENT?[/title]
Here is a scenario that is usually familiar to many people in the usa. The local sheriff provides just served you using papers. You realize the charge card company you have been working with for months to reach an authentic pay down plan is now ahead and sued you for the balance on your last known credit card statement. Itâs now established. Depending on the state or county youâre with, you have 20-30 days to respond with the official letter to avoid a default judgment.
For any next week, your mailbox is inundated with words from local attorneys providing bankruptcy services, and even so-called credit ratings repair services preying on you while you are most vulnerable and lost. One or more attorneys often have even headed the sheriff off in the pass, and their letter arrives before he does indeed. So by the time he gets to your home, you are already prepared and the court documents are no big surprise.
What do you do?
Your options are to respond, or to never respond to the lawsuit. If you choose to respond, you must do it within the stated amount of time in the letter served to you by the sheriff.
What happens if you do not respond to a credit card lawsuit?
If you do not respond to credit cards lawsuit, the court will issue a default judgment against you, and you have got to pay the full amount of the balance, plus trial costs and attorneysâ charges. If you are fortunate, the court will possess a hand in negotiating a good monthly amount you'll need to pay, on time, because that's what the court provides ordered. No slacking off on these monthly payments.
What happens if you decide to do respond to credit cards lawsuit?
If you respond to credit cards lawsuit, be sure to send one copy on the court where the summons originated in, most likely your state courthouse, and one copy to the attorneysâ office who is usually filing the lawsuit. Itâs a good idea to keep a copy for your own records. Itâs also smart to deliver your letter of reaction to the court in person, because they will day stamp the letter, and will also be sure that they have received the letter on time. Also, they will stamp the copy for any attorneysâ office, as well as ones own copy, if you tend to go in person. Otherwise, send the letter on the courthouse and attorneysâ company using certified mail, with signature confirmation.
You might want to contact an attorney to obtain advice on how to properly answer the lawsuit. The attorney will study the letter, and cause you to aware of how to properly write your answer letter, or he/she will respond for you.
Once you file ones response, you have just bought yourself time to figure out what steps to take next.
So what are your alternatives?
At this point, the ball is the suing attorneysâ in the court. It is up to them to respond to your letter. While their response is being prepared, you have time figure out if you will risk a judgment against you, or possibly consider bankruptcy, depending on how much money you owe to how many collectors.
If you decide to seek bankruptcy relief before a judgment has been passed, all legal proceedings against you will find yourself stopped immediately. You will have the opportunity to erase most of your existing debts, and find a fresh start. A bankruptcy will continue on your credit account for seven years.
If a judgment is passed against you, you will not only have to pay the overwhelming amount of the credit card stabilize, but you will also leave yourself ready to accept other creditors doing the same principle. Once a judgment has been passed against you, you cannot seek bankruptcy relief and include that debt inside your filing. Itâs important to learn that even if the court dismissed the suit against you, the creditor can track you again. A judgment against you will stay on your credit for 20 years.

About the Author

Bankruptcy in NJ are New Jersey Bankruptcy attorneys working with individuals to help them decide if bankruptcy is the right for them. For more information about bankruptcy, visit
Bankruptcy-in-NJ.com

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