If you have ever been sued for a debt, you know that creditors will do everything in their power to collect from you. I constantly tell my clients that the biggest mistake they can make when sued for a debt, is to ignore it.
It is probably just human nature to take bills, demands, notices, collection letters, lawsuits, etc. and just throw them in the garbage along with the latest mailer from a candidate running for office and pretend they don’t exist. I cannot be certain about a lot of things- but one thing I know for sure is that you are 100% more likely to get into trouble and deeper debt if you ignore your bills. This doesn’t mean you get into trouble if you don’t pay your bills- just if you ignore them.
Law suits are especially troubling if you ignore them. If a collection lawsuit is ignored, typically the creditor promptly obtains a judgment against you by default. Not only can the creditor start to garnish your wages, but that default judgement can then immediately be recorded with the local county recorder- and a lien is placed against any real property you own in that county. That lien cannot be automatically removed through a Chapter 7 or Chapter 13 bankruptcy.
Even though a simple bankruptcy filing is not able to remove a judgment lien, judgment liens CAN be removed through a proper motion to the bankruptcy court. One of the biggest mistakes I see bankruptcy attorneys make are in preparing, arguing, and submitting these motions.
A moment of honesty:
Lets be honest here- its probably no surprise, but bankruptcy attorneys rely heavily on software to create the bankruptcy statements, schedules, and petitions filed with every bankruptcy case. This is a huge benefit to clients, because it saves a lot of money on attorney fees. That said- if the paperwork is not carefully reviewed by an experienced bankruptcy attorney, many mistakes are made. This is especially true for motions designed to avoid judgment liens. The bankruptcy software does not prepare adequate motions to remove judgments liens from your real property, because each local bankruptcy court has different rules for removing these liens in Chapter 7 cases.
Liens can be avoided through Chapter 7 and Chapter 13 bankruptcy cases if it is done properly. Call today to find out how we can help you receive a fresh start!
