How Our Denver Bankruptcy Attorneys Can Protect You During an Impending Lawsuit
If you are struggling with debt, you’ve likely tried to avoid your phone and mailbox. When you do decide to check, you may find that the seemingly worst-case scenario has occurred: you’re being sued by one of your creditors.
This unfortunate situation happens to many who are in default on the payments due to their creditors. It is important to understand why creditors sue and even more important to understand how you can protect yourself during a lawsuit.
Wink & Wink, the leading bankruptcy attorneys near you, can help guide you through a lawsuit, explain protections that are in place due to Colorado law and help you get to the other side of this financial challenge.
In this article, we will explain why creditors sue, what assets you can protect during a lawsuit and how Wink & Wink can support you as your Denver bankruptcy lawyers. No matter the solution we provide – debt settlement or bankruptcy – know that we are here to ensure that this difficult time is manageable for you.
Why Do Creditors Sue? The Bankruptcy Experts at Wink & Wink Provide the Facts
Unlike secured debt such as car loans and mortgages in which the creditor can take your car or home if you don’t pay the loan, unsecured creditors typically cannot take your property without your permission when you stop paying them. Because of this, many unsecured creditors (and even some secured creditors) will eventually sue you when you stop paying them. They do this so that they can get a judgment against you, which can be used to garnish wages or funds from your bank account and even put a lien on your home or other real estate you own.
These legal collection mechanisms enable the creditor to take control of your property without your permission after judgment is entered against you. With garnishment, the creditor can take funds from your paycheck or bank account. With a judgment lien, the creditor can initiate a foreclosure proceeding against your home or other real estate.
For a creditor, the typical path they follow toward collecting on your debt is this: they file a lawsuit against you after you stop paying. While the timeframe of a lawsuit varies, most creditors will sue you after 6 to 24 months of non-payment. In Colorado, the statute of limitations for most debt is 6 years, so they can wait much longer. During this time, they may charge off your debt. Charge off simply means the creditor has taken a tax write-off for the debt. It does not mean you no longer owe the debt, and the creditor who charged off the debt can still sue you or sell the debt to a collection company who can then do the same.
Once a creditor or collection agent is in a position to sue you, consider having an excellent debt settlement or bankruptcy lawyer involved to protect you. Legal protection is of the utmost importance, especially given the stakes of a lien on your home or wage garnishment.
Fortunately, Wink & Wink can be of assistance as the premier bankruptcy attorneys near you who have vast experience guiding our clients through difficult legal scenarios. Our Denver bankruptcy lawyers know the law well and can strategically position you for the best possible outcome.
How Wink & Wink’s Team of Bankruptcy Attorneys Near You Can Help When a Creditor Sues
If you default on debt, you should assume a lawsuit is coming sooner or later and take action in the near term. You can address your debt in advance with a number of options that Wink & Wink offers. When you sit down with us for a free consultation, we will patiently and thoroughly seek to understand your circumstances and offer the best strategy possible.
If we can protect you with a bankruptcy or debt settlement solution in advance of a lawsuit, this is the strategy we will pursue. However, there are also solutions that can be enacted even after judgment has entered against you, and you’re facing garnishment or foreclosure from a judgment lien on your home.
Understanding Exemptions – and the Potential Assistance Bankruptcy Can Provide
One of the important strategies for protecting your assets from a creditor is to consider Colorado’s exemptions, which protect up to $2,500 of funds in the bank. You have 14 days after a creditor serves a “writ of garnishment” (court-ordered seizure of assets) to claim this exemption. To receive Wink & Wink’s legal help after you’ve been served, contact our Denver bankruptcy lawyers right away.
In addition, Colorado also provides protection for up to $250,000 of home equity. If you are 60 years of age or older or disabled, you can protect up to $350,000. If you do decide to seek Chapter 7 or Chapter 13 bankruptcy with the assistance of a Denver bankruptcy lawyer, this exemption may enable you to remove the judgment lien completely through a special motion filed in the bankruptcy proceeding.
Regardless of whether you choose to file for bankruptcy with a bankruptcy attorney near you or if a creditor tries to garnish you or foreclose on their judgment lien, you should absolutely seek to claim any and every applicable exemption to protect your home and property.
Worried About an Impending Lawsuit from a Creditor? Call Denver Bankruptcy Lawyers Wink & Wink
Wink & Wink understands Colorado law and can put you in the best position to weather an impending lawsuit or even to help protect you from a potential lawsuit from creditors.
Our debt settlement and bankruptcy solutions can help make challenging times much more manageable, especially with understanding, knowledgeable bankruptcy lawyers on your side.
Get in touch for a free consultation. Reach us by calling (303) 410-1720. Or you can send us a message online. We look forward to developing the right strategy so that you can avoid a less-than-desirable entanglement with your creditors. We want to set you on a path to a better financial future – and we know our expertise can deliver just that.