Once a creditor give up on harassing you to get paid, they generally will send the matter to a local attorney to file a collection lawsuit.
Once a collection lawsuit is filed, you have the option to fighting it yourself or you will need to hire an attorney to represent you. If you do not answer, a default judgment will be entered against you.
Once a judgement is entered against you, it will be for whatever amount the court decides you owe. In additional, Attorneys Fees and Court Costs are also added on top of the judgment amount.
With the judgment in hand, the creditor can proceed to have your wages garnished, your bank account seized and use any other judgement collection remedies available to them.
If you have real property like a house or land, the creditor can also file an Abstract of Judgement with the County Recorder, which enables the judgement to become a secured lien against your property.
Lawsuits and the wage garnishment that follows can be prevented or stopped by filing a bankruptcy case.
Liens on your property can be "avoided" depends on when the lien was filed and if there is any equity in your home over the exemption you claim in the bankruptcy case.
We will file a Notice of Stay for free for our bankruptcy clients in any state court lawsuit, so no one in the future will proceed against you by mistake.
Our goal is to prevent any future hassles for you and help you to achieve a debt free tomorrow.