Debt payment delinquency can and will lead to legal issues. While there is no chance that you will be arrested for missing a credit card payment, creditors and lenders alike have the right to sue you if default on an account. What makes legal action a possibility is that when you sign an agreement for a loan or a line of credit, you also agree to repay the amount owed plus accrued interest. When you fail to do so, the creditor or lender can file a lawsuit against you, which — if granted a favorable judgment — can result in your bank account being frozen and wages garnished.
The Louisiana bankruptcy attorneys at E. Orum Young are here to help free you from the grips of debt. We understand the severity of facing legal repercussions for debt issues and can take immediate action to prevent an unfavorable judicial ruling.
Louisiana Bankruptcies and Civil Litigation
Filing bankruptcy often only becomes a consideration after an individual realizes that there is no way to recover from their financial situation without help. For small business owners, this may be once they notice that they are not yielding a satisfactory return on investment (ROI), while consumers often take action after seeing their credit score take a hit as they continue to receive an influx of debt collection calls. Finding out that a creditor or lender is suing, however, often sends many individuals into a panic, as they look to mediate the situation as soon as possible.
Obtaining a lawyer and filing bankruptcy is one of the most effective ways to put an immediate halt to civil litigation. The way this is accomplished is through an automatic stay which prohibits creditors from pursuing you; meaning they’ll have to stop legal action and any attempts to recover funds. The only way civil litigation may continue is if one of two things happen:
- The creditor convinces the court to lift the automatic stay
- The creditor files and wins a lawsuit for the same issues in bankruptcy court
The chances of a creditor pursuing the case are often low seeing as you filing for bankruptcy symbolizes a lack of funds, making the bankruptcy process mutually beneficial. In the event the creditor takes the case to bankruptcy court, it’s essential that you have a knowledgeable attorney on your side who can help mitigate the situation.
Seasoned Louisiana Bankruptcy Attorneys
The Louisiana bankruptcy attorneys at E. Orum Young Law Offices can ensure that your bankruptcy application is filed in the appropriate court and that the necessary parties are notified. With over 20,000 cases submitted, we’ve filed the most bankruptcies in Northeast Louisiana and have a thorough understanding of the bankruptcy process. Let us go to work for you. Contact us today for a free case evaluation. Our Trial Guarantee ensures that we will take your case to trial if you are ever dissatisfied with case results.