Let’s say you are being sued for something, such as not making a payment on your credit card, your car or some other payment that you owe but are having trouble paying.
Maybe you’re thinking of filing for Chapter 7 or Chapter 13 bankruptcy in Las Vegas in the not-too-distant future. And if so, maybe you’re tempted to think, “If I file for bankruptcy, I can get rid of these debts, so I really don’t need to worry about this lawsuit.”
If a lawsuit is filed against you and you ignore it and don’t file an answer, then the court will enter a judgment against you.This is a big problem for you. Because a judgment means the creditor has a lien on your property. And that changes the nature of the debt to a “secured debt” instead of an “unsecured debt.”
The main points to take away are:
- Do not ignore lawsuits. Make sure you at least file answers to them so that the plaintiff cannot easily get a judgment against you. And of course, always talk to a lawyer if possible.
- If you think bankruptcy may be in your future, definitely talk to a bankruptcy lawyer to make sure you plan ahead and protect yourself as well as possible.