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What Is The Cheapest Way To Deal With A Lawsuit From A Creditor?


Business to consumer lawsuits were rare a few decades ago, but today they are on the rise, especially in states like Florida, which offer little protection to consumers.  Creditors and collection agencies have the right to sue you over credit card debt, unpaid medical bills, and many other kinds of consumer debts.  If you simply ignore the lawsuit, that will only make matters worse.  If you don’t respond to the lawsuit, the court will enter a default judgment in the creditor’s favor, and soon the court will authorize a wage garnishment or bank levy, giving the creditor the right to take money out of your paycheck or even directly out of your bank account.  Ignoring the lawsuit is the worst response, but which option is the best solution depends on your situation.  If you are facing lawsuits from creditors, a Boca Raton debt lawyer can help you choose the best way to proceed.

Settle the Lawsuit Before the Court Can Enter a Judgment

You have probably seen news stories where Disney paid hundreds of thousands of dollars, or even more, to people who sued after getting injured at Disney theme parks.  In most instances, these cases do not go to trial; Disney and the injured person, with the help of their lawyers, agreed on how much was reasonable to pay, instead of a judge deciding this at trial.  Most lawsuits, regardless of the area of law on which they are based, and regardless of the amount of money at stake, settle without going to trial.

The best thing you can do when a creditor sues you could be to hire a lawyer to help you settle the lawsuit.  Depending on the funds you have available, you could settle the lawsuit for a lower amount than the creditor is requesting, but you may need to pay this as a lump sum.  You might also agree to pay the full amount in installments, but this might require a debt consolidation loan.

File for Bankruptcy Protection

If a lawsuit from a creditor is just one of your insurmountable financial problems, it might be best to file for bankruptcy protection.  A bankruptcy protection delays wage garnishments by several years, and it enables you to discharge many of your debts.  Many consumers can enter chapter 7 bankruptcy without forfeiting any of their assets.

Be So Poor That You Don’t Have Any Assets for the Creditor to Seize

Judgments, wage garnishments, and bank levies enable creditors to help themselves to your money, but the law protects you from having creditors take certain funds or certain assets.  Money that comes from Social Security benefits, child support, SNAP benefits, and other public assistance benefits is exempt from garnishment.  In other words, if you own nothing but the bare necessities, the creditor may not be able to take your money, even if the court authorizes a bank levy or wage garnishment.

Contact a South Florida Debt Lawyer About Business to Consumer Lawsuits

A South Florida debt lawyer can help you if your debt problems are so bad that creditors are suing you.  Contact Nowack & Olson, PLLC in Boca Raton, Florida to discuss your case.



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