1. If you don’t respond to the lawsuit, you automatically lose.
As a Memphis bankruptcy lawyer, I can’t tell you how many times I’ve seen clients come in who have a judgement against them for a debt just because they never responded or didn’t show up in court.
It’s not always their fault – sometimes it’s impossible to take time off from work or family – but it’s a frustrating reason to lose a lawsuit.
2. If you do respond, the lawsuit can take longer.
A judge will have to decide the case, which can take a while. If the judge decides in your favor or dismisses the case, you’re free to move on. The lawsuit won’t even show up on your credit score.
However, the judge may find fault against you. Even if it’s just by default because you didn’t show in court, the lawsuit can appear on your credit score for approximately 7 years.
3. Bankruptcy automatically stops lawsuits against you.
A lot of people don’t realize the power of bankruptcy. It can stop foreclosure, repossession, wage garnishment, and yes, lawsuits. That’s why if you’re considering bankruptcy, it’s always best to file before you get a judgement on the lawsuit.
If you’re worried about how all this will appear on your credit score, remember the judgement against you can show up for just as long as a bankruptcy. So if you have other debts, it’s best to deal with them all at once.
Our office offers an exclusive, free credit course for all our clients that can get your credit to an A rating, even after a bankruptcy.
If you have any questions about lawsuits or want to talk more about your options, call us today at 901-327-2100, or just fill out the form on this page. We’d be happy to discuss your situation, no strings attached.