Debt Collection Lawsuits Against Retirees

If business to consumer lawsuits remind you of a lion attacking a mouse, your mental image is an accurate metaphor. They are a case of the strong preying on the weak just because they can. Anyone has the right to file a debt collection lawsuit in civil court if someone who owes them money has not repaid it, but the original purpose of these laws was so that you could get your money if you sold your neighbor a horse, but he only paid you a fraction of what he promised to pay. Business to consumer lawsuits are as ugly as they sound, and unfortunately, they are a common occurrence in Florida. When cash-strapped consumers cannot pay their bills, the creditor might just sell the debt to a collection agency, because even though the collection agency buys the debt for pennies on the dollar, it is still more money than the creditor can reasonably expect the debtor to pay in the foreseeable future. Even if you have little hope of paying, creditors might still sue you and see how much money they can get out of you, even if you are retired. For help quickly assembling an invisibility cloak to protect you from debt collection lawsuits, contact a Florida bankruptcy and retirement lawyer.

Creditors Will Not Think Twice Before Suing Seniors

If you are a defendant in a debt collection lawsuit, you already had plenty of stress before a process server handed you the paperwork notifying you that you were being sued. It always means that you owe money that you can’t pay. This is bad enough when you are in the workforce and living paycheck to paycheck, because there is always some hope that your income will increase. It is even worse when you are retired and living on a fixed income.

The good news is that, no matter what happens, the court will not order the Social Security Administration to direct your Social Security check to your creditors instead of to you. The bad news is that creditors can sue you, and if they win, they can garnish your bank accounts. The law sets limits on how much money creditors can garnish from your bank account in a month.

Stopping Debt Collection Lawsuits Before They Start

If you have fallen behind on credit card payments or other debt repayments, and the creditors are threatening to sue you, you should not engage them in a cat and mouse game. Instead, you should file for bankruptcy protection before they sue. This way, the bankruptcy court decides how much you will pay, and the answer might be nothing. Chapter 7 bankruptcy gives the bankruptcy court the right to liquidate your assets to settle your debts, but some property is exempt; for example, you get to keep the house you live in and the car you drive. Most chapter 7 bankruptcy applicants, including most retirees who file for bankruptcy, do not own any non-exempt assets, so the court discharges their eligible debts without liquidating any of their property.

Work With a Debt Lawyer About Filing for Bankruptcy Protection

A South Florida debt lawyer can help you if you are retired, and creditors are threatening to sue you.  Contact Nowack & Olson, PLLC in Plantation, Florida to discuss your case.

Source:

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