Legal Articles, Bankruptcy & Debt

Negotiating the Collections Lawsuit: The Creditor May Worry You Will File for Bankruptcy

Even if you are not planning to file for bankruptcy and are open to negotiating a settlement, you may be surprised to find out how willing a creditor is to work with you.

Court Judgments & Wage Garnishing: What is Exempt?

If your wages are about to be garnished, you and your employer must both be notified. But what about other forms of income?

Millennial Homebuyers Restricted by Student Loan Debt

Delinquencies and defaults on student loans have risen past 11 percent, even with the availability of alternative repayment programs.

Court Judgments: Difficult, But Not the End of the World!

Replying to a collections lawsuit is in your best interest; if you don't, a default judgment can be granted against you almost automatically, bringing with it the threat of wage garnishments, property seizure, and bank levies.

Collections Lawsuits: Don’t Let the Creditor Turn You into a Victim

A reply to a collection lawsuit is necessary unless you have nothing to lose. Do not feel so intimidated by the creditor, a debt collections agency, or the court process overall that you fall victim and end up with a default judgment against you.

No Assets: Why is the Creditor Wasting Time Suing Me in a Collections Lawsuit?

While there may be no rhyme or reason as to why some creditors or collections agencies will decide to sue you, it is in your best interest to consult with a collections lawsuit attorney as soon as you receive a summons and complaint.

Cumulative Student Loan Debt Reaches $1.53 Trillion

Defaults on student loans can have severe repercussions for borrowers of any age. Private servicers may sue upon default, while the federal government may garnish wages or intercept tax refunds.

Preference suits and the earmarking doctrine

If before bankruptcy is filed the debtor pays some debts and not others, ie 'prefers' some creditors, the court may be able to get back those payments from the person or entity that received the funds. For insiders (relatives, business partners, others with a special relationship to the debtor) the court looks back at least one year for such payments, and may be able to look back over a much longer period to determine if the payment qualifies for recovery. One of the defenses to this doctrine is called the earmarking doctrine, if funds were specifically provided to the debtor conditioned on paying a specific debt.

Default Judgment: The Automatic Stay Could Help at the Last Minute

The automatic stay is an extremely helpful injunction, and your creditors will be alerted to your bankruptcy filing; however, even if they are not, the automatic stay still prohibits them from collecting on any debts.

Notice to creditors is critical to eliminate debts. Sending a notice to too old an address may not work.

If a creditor does not receive notice of a bankruptcy, their debt may not be eliminated by the bankruptcy case, even if the case is successful. If addresses are not quickly corrected, or a creditor added soon after filing, it may not be possible to add the creditor later. If an address is incorrect or outdated, the debt may not be eliminated. In one recent decision, the debtor sent a notice to an attorney that had represented the creditor four years earlier instead of to an address shown on the judgment to the creditor itself. While the debtor 'got away with it' in this particular case (though incurring substantial additional fees in the process), under very slightly different circumstances the debt would not have been eliminated.

Legal Articles Additional Disclaimer

Lawyer.com is not a law firm and does not offer legal advice. Content posted on Lawyer.com is the sole responsibility of the person from whom such content originated and is not reviewed or commented on by Lawyer.com. The application of law to any set of facts is a highly specialized skill, practiced by lawyers and often dependent on jurisdiction. Content on the site of a legal nature may or may not be accurate for a particular state or jurisdiction and may largely depend on specific circumstances surrounding individual cases, which may or may not be consistent with your circumstances or may no longer be up-to-date to the extent that laws have changed since posting. Legal articles therefore are for review as general research and for use in helping to gauge a lawyer's expertise on a matter. If you are seeking specific legal advice, Lawyer.com recommends that you contact a lawyer to review your specific issues. See Lawyer.com's full Terms of Use for more information.

Free Help: Use This Form or Call 800-620-0900

Call me for fastest results!
800-620-0900

Free Help: Use This Form or Call 800-620-0900

By submitting this lawyer request, I confirm I have read and agree to the Consent to Receive Email, Phone, Text Messages, Terms of Use, and Privacy Policy. Information provided is not privileged or confidential.