Taking Quick Action on a Garnishment Lawsuit Makes All the Difference
If you are struggling with debt, it’s important to know up front what happens when you let that debt go unpaid for too long.
Although many people who struggle with credit card debt would prefer to look the other way, let the calls go to voicemail, and throw the unopened letters in the trash, facing the facts actually gives you power. If you know the facts, you know what you’re up against.
Here’s what to expect from your creditors if you are not paying them and don’t have a debt relief solution:
- A lawsuit.
- Money collected from your paycheck (known as wage garnishment).
- Money taken from your bank account (another form of garnishment).
- A lien on your home.
The longer you go without paying creditors, the more likely you will get sued. When that happens, you begin to lose control over how you pay back your debt, and your creditors decide for you. However, if you contact a debt settlement lawyer, you can avoid the worst of legal collection by settling your debt.
Clients who choose debt settlement with The Wink Law Firm often settle for half of what they owe, and the case is closed. No more letters, calls, and messages on social media. All you need to do is schedule a free consultation, and The Wink Law Firm will help you tackle your debt situation now.
What Will Creditors Do to Get Their Money?
Going into default on your debt is required to settle it for less than is owed. However, if you don’t settle after months or, in some cases, years, your creditors will take legal action against you to collect the money you owe. This is within their legal rights, and they will pursue aggressive tactics if you don’t take action to settle your debt on your own terms.
- A lawsuit is coming. Typical unsecured creditors such as credit cards and medical bills almost sue you during the first six months of default. Other creditors, such as business landlords and merchant cash advance lenders, may take action sooner. If you don’t settle your debt, your creditors typically sue you 6 to 24 months after you stop paying them. If you haven’t been sued yet and are at least 4 to 5 months into default, you likely have a good opportunity to settle your debt for approximately half of what is owed. The Wink Law Firm has extensive experience in settling debt and can advise you on when to accept a settlement to minimize your risk of being sued while also paying as little as possible.
- What happens if you don’t respond to this lawsuit? After your creditor files a lawsuit, and you don’t respond within 21 days, they go to court to get a default judgment against you. Now, it is within your creditor’s legal right to garnish your wages, garnish your bank account, and put a lien on your home to recoup the amount you owe.
- The money creditors can legally garnish is significant. Depending on the creditor, you could see anywhere from 15% to 70% of your wages garnished. Think 15% for student loans, 20% for creditors in Colorado, and 30% to 70% for the IRS. Expect as much as 50% for child support garnishment.
You don’t want to see your hard-earned money taken from your paycheck or bank account. You also don’t want to deal with the threat of losing your home. The sooner you contact The Wink Law Firm for a free consultation, the sooner you’ll be able to settle your debt with a solution that benefits you, not the collectors.
Debt Settlement Is Your Solution
Whether you’re worried about getting sued, losing money from your check, or having your home taken away, The Wink Law Firm has a strategy to help you get clear of debt and start fresh.
Our debt settlement attorneys may recommend several tactics, depending on your situation. For example, if you find out you’re being sued, you may be in a strategically different position than if your wages are already being garnished. This is why it is important to discuss a solution with a knowledgeable Denver debt settlement lawyer as quickly as possible to get the best debt relief deal.
Here’s what you need to know as you schedule your free consultation with The Wink Law Firm:
- Our team can help you devise a plan where you end up paying only about half of what you owe.
- We may also recommend Chapter 7 or Chapter 13 bankruptcy to eliminate your debt completely, especially if you don’t have the finances to pay a lump sum of 50% for settlement. While Chapter 13 bankruptcy is often more expensive than Chapter 7 and requires you to complete a 3 to 5 year payment plan, it can also be a great deal and often costs less than settling debt outside of bankruptcy. Also, whether Chapter 7 or 13, debt discharged in bankruptcy is not taxable income while debt forgiven through settlement outside of bankruptcy will lead to the creditor issuing you a 1099 at the end of the year for forgiven debt income,
- But what if your wages are already being garnished? If your creditors have already begun garnishing your wages or bank account, or they’ve placed a lien on your home, there are still actions you can take to protect your money under the law. You have ten days to do so, once you’ve been notified of a Writ of Garnishment (your creditor’s legal right to garnish your money) to claim your funds exempt (i.e., protected from garnishment). This is especially important for bank account garnishments because Colorado law allows everyone to protect up to $2,500 in the bank. Find out how much of your money and home value you can protect from creditors by meeting with The Wink Law Firm’s debt settlement attorney.
Contact Denver’s Debt Settlement Team Now Settle Your Debt
Time is of the essence when it comes to garnishment lawsuits from your creditors. The Wink Law Firm is ready to support you, so you’re in the best position possible. We help clients settle their debt and move past the stress, anxiety, and frustration that comes with mounting bills.
Our Denver debt settlement team is understanding, patient, and highly experienced at helping clients to settle their debt or protect their money and assets, even in the midst of legal trouble.
Discover what we can do to get you out of your debt difficulties today by scheduling your free consultation. Call us at (720) 523-0620 or contact our debt settlement lawyer online.