It's important to defend yourself against debt collector harassment. A creditor or law firm may consider filing a lawsuit if you ignore their demands, so it is in your best interest that communicate with creditors about this issue promptly! The inherent problem with debt collectors is that they know people often continue to ignore difficult situations until forced into action. Even then, many will allow a creditor's pursuit of them as long as possible while hoping things get easier or settled eventually--which can be harmful for you when your situation seemed hopeless!
Ignoring Court Documents Will Not Stop Debt Collector Harassment
Ignoring a summons and complaint might seem easy, but it will only make things worse. "If you’ve received an official notice from your creditor that they've sued over debt," says attorney Jill Phillips of the Maryland-based law firm The Phillips Law Offices, LLC both “not to ignore!" She continues: "It could take years for them [the court] to even consider hearing out all possible defenses."
Depending on who you owe, ignoring the lawsuit may lead to having an outstanding judgment against you reported to the credit bureaus, which will result in further damage to your credit score. A judgment will incur interest at a rate of 12% a year in Maryland, and subject you to wage garnishments, a lien on your house and even possible foreclosure on your home.
Why You Should Respond to a summons and complaint
If you don’t file an answer, you won’t be allowed to tell the court that you think the debt is either unfair or not owed by you. If this has happened to you, bankruptcy may be the only way out after you’ve waived your chance to defend the debt. If you still think the lawsuit is unfair, you need to act quickly and hire an attorney. Even after you file an answer, you can still negotiate a debt settlement. However, a debt collector has no legal obligation to accept or even discuss settlement once the case has been filed. With that said, many attorneys can leverage certain federal rights to get the creditors to come to the table and talk settlement.
Use Bankruptcy and the Automatic Stay To Stop Collection Cases and Debt Collection Harassment
Even after a judgment has been issued against you, there are still debt relief options, including “the automatic stay.” Filing for bankruptcy puts all collection efforts on hold and stops debt collectors from taking any action to collect on the debt, and all legal processes. If you file the bankruptcy before a final judgment, that case will be stopped dead in its tracks and never proceed to a judgment against you.
How To Use the right legal strategy with the automatic stay
If creditors learn about your bankruptcy plan before you’ve filed the case, it could prove costly. If debt collectors don't know that they're going to get their judgement denied or assets taken by a competing creditor just because of how much time has passed since filing for chapter 7 personal protection from injury- then maybe they should think twice about harassing people this way in first place.
Don’t Wait – Take the Power Away From Debt Collectors!
If you received a debt collection notice, don’t ignore it. Your timely response to the debt collectors will be critical in debt relief . If debt collection is causing you trouble and preventing you from getting a fresh start on your finances, your best option might be filing for bankruptcy, and there are many qualified bankruptcy attorneys in Maryland and all other states.
