What will stop a lawsuit? Debt consolidation or bankruptcy? Bankruptcy and debt consolidation are both very effective debt relief options. But, what if you are ongoing a lawsuit? What will be better for you then? What has the power to stop a lawsuit, bankruptcy, or debt consolidation? Read to know!!
Bankruptcy has power. And, you got to believe it through and through.
The benefits of bankruptcy are so vast that at times they cast out the social stigmas attached to its name.
On the other hand, debt consolidation is the most useful debt relief option you can go for when you are having trouble paying off unsecured debts.
This post will, however, only deal with one perspective that I figured out lately, is a question for many debtors.
The question is nothing else than, what is better for stopping a lawsuit, bankruptcy or debt consolidation?!
But, before I head on to discriminate the properties of these two debt relief options, I would like to say that lawsuits vary from case to case. If a creditor files a lawsuit against you for a secured debt, then chances of stopping that lawsuit will become quite thin!
So, stopping a lawsuit largely depends on the state of the lawsuit than what lifelines you are planning to choose.
Plus, if the lawsuit already receives a default judgment from the court, due to your lack of participation at the proceedings, then stopping any resulting consequence, like wage garnishment and so on, will get very difficult!
Hence, I would always ask you to discuss your case with a lawyer for better assistance. An online blog post can only help you up to a certain extent. But getting more insight is very important when your debts are ending up in lawsuits.
Our Oak View Law Group team of experts is always there to help you out. So, get your free consultation right away by reaching out to us, at 800-530-6854, any time of the day from 9:00 am to 6:00 pm.
Or, sign up here, for becoming our client! In the meantime, by the way, you can continue reading this post to see, what helps put an end to lawsuits, debt consolidation or bankruptcy.
Let’s get this thing straight. As soon as you file bankruptcy, the court issues an automatic stay both on you and your assets.
This automatic stay is the biggest weapon that bankruptcy can provide you. It will stop any creditor from taking any legal action against you regarding debt reimbursement. These include lawsuits, wage garnishments, and anything as such.
And, no matter whatever chapter you file, this automatic stay is applicable for all!
Even though automatic stay will halt any further proceedings of a lawsuit, but still a creditor can apply for relief from this stay, in court.
This usually happens, if the creditor is a secured lender, and the case is with anything related to a secured loan.
But, this happens rarely!
A creditor might not want to file a motion of relief from the automatic stay if you are regular on the payments for your secured debt.
And, an unsecured creditor usually doesn’t file a relief motion, as the process is costly, and the profit margin for an unsecured creditor is not much!
Debt consolidation can’t stop a lawsuit! That’s it, thin and crisp!
But what it can do is pretty interesting, I must say! For this, however, you need to take help of a debt consolidation company.
Don’t expect that a creditor will stop a lawsuit proceeding, just because you plan to take out a consolidation loan and organize your payments!!
As with us, the Oak View Law Group, we have helped many clients avoid a lawsuit after they signed up for debt relief! You will like it the way we work.
Once your sign up process is complete, you will receive a free consultation call from our network.
In that phone call, you will have to state all the problems you are facing, and that definitely includes any ongoing lawsuit against you.
Make sure you take that phone call seriously and explain everything that comes to your head.
Then, once we get the details about the lawsuit and the respective creditor, our experts will contact him.
We will go into an arrangement plan with the creditor, which involves a payment rearrangement for your due debts.
So, while you and we keep doing the payments henceforth, regularly, the creditor will halt any wage garnishment, and might even revoke the lawsuit against you.
But, the more you waste time the worse things can get.
If you really believe that you have no money to make any payments, then probably you should file bankruptcy!
But if you think of other ways, and see that you can arrange money and work your debts out, thereby avoiding the bad reputation that bankruptcy holds on to, then debt consolidation is the best option!
Well, whatever you do, act fast! And, you can always call us at the above-mentioned number, for guidance, whenever you want!