Debtors understand that they have financial problems when they are unable to make payments on credit cards, medical bills, second mortgages, student loans and other types of bills. Often, distressed debtors try various remedies during financially hard times including:
- "Borrowing from Peter to pay Paul," which may include obtaining credit transfers repeatedly and passing balances back and forth between credit cards
- Borrowing from family members or soliciting monetary gifts from them
- Taking on second and third jobs
- Selling off assets such as vacation homes, campers, boats, jewelry or antiques
- Borrowing from or liquidating pension funds
- Downsizing homes or cars to less expensive ones
Steps Leading up to a Full-Blown Financial Disaster
For many debtors who are in over their heads in debt, all these attempts at resolving debt prove unsuccessful in the end. They put off bankruptcy, however, for various reasons. Creditor harassment many begin to build — and these distressed debtors still believe they can find some other answer than filing bankruptcy.
Wage Garnishment or a Creditor Lawsuit Demands Quick Action
Then comes the wake-up call: a lawsuit from a creditor threatening to seize assets, missing wages by way of wage garnishment or a levy on a bank account. Once an individual loses control of his or her paycheck, that person understands that a financial emergency is underway. This is often the point at which someone calls or e-mails Prescott & Pearson, P.A., requesting a consultation on how to cope. In many cases, a Chapter 7 or Chapter 13 bankruptcy may solve the problem — but first we must address the urgent matter of the wage garnishment or creditor lawsuit.
A lawsuit may come in the form of a summons and complaint requiring a prompt response with a court (usually within 20 days). Sometimes these actions take debtors by surprise, when they get little or no notice that these drastic measures are in the works. Whether you contact us before any wage garnishment has occurred or a creditor lawsuit summons has arrived, Prescott & Pearson, P.A., understands the urgency of the situation, and we can help you promptly. Filing bankruptcy can put the automatic stay in place and shield you from some of the harshest consequences of aggressive debt collection practices.
Minneapolis Garnishment Attorney · Minnesota Bankruptcy Judgment Lawyer
Call for a Free Consultation Today
- Minneapolis-St. Paul Area: 651-968-8096
- Minnesota Toll-Free: 888-366-0827
To learn more about out-of-control debt, creditor harassment, wage garnishment, creditor lawsuits or bank levies, call or contact our bankruptcy lawyers today. We offer free initial consultations, quality services at competitive rates and effective representation statewide.
