Lawsuits and Bankruptcy
Being served with a lawsuit or impending trial can often prompt a defendant to consider bankruptcy. Because such a wide range of legal theories exists, from a simple collection action to much more involved business tort case, there is no one answer to whether the filing of this suit should signal your time to file bankruptcy.
Contact a bankruptcy attorney in your area
If the complaint is not answered, the law presumes that you agree with the contention of the lawsuit. A plaintiff may then ask the court for an entry of judgment in the amount stated in the complaint. If no amount is stated in the complaint, the plaintiff has to put forward proof of the amount of damages. In most cases, a defendant may not participate in this hearing to set the damages unless he or she responded to the complaint.
Once the court enters a judgment, the plaintiff can get a lien on your assets, a levy on your bank accounts, as well as garnishing your wages.
Bankruptcy and lawsuits are both extremely complex and frustrating. An experienced bankruptcy lawyer in your area can advise towards the best course of action given the details of your case. An experienced bankruptcy lawyer can help you make the right decisions, beginning with whether to answer the complaint, to determining which of your assets are exempt, deciding whether or not to file bankruptcy, and helping you with every decision throughout the bankruptcy process.
Contact a bankruptcy lawyer in your area to find out more about filing for bankruptcy.