Don't Wait for the Lawsuit to Turn into a JudgmentWhat Can You Do if You Are Served with a Lawsuit?After creditors have attempted to collect the debt owed to them many will file a lawsuit if this debt remains unpaid for several months. Once you are served with the lawsuit you typically have 30 days to file a response to the lawsuit. If you don’t do this then the creditor will obtain a default judgment against you. You have. a few options when you are served with a lawsuit:Do nothing and have a judgment entered against you.File a response to the lawsuit and contact the creditor and work out a repayment plan.File bankruptcy to stop the lawsuit and discharge the debt.How Does Bankruptcy Stop a Lawsuit?When you file bankruptcy (either Chapter 7 or Chapter 13, an order called the automatic stay goes into effect prevents creditors from continuing any collection activity, including proceeding with a lawsuit. Has soon as your case is filed the creditor has to stop the lawsuit.Which Lawsuits Will Continue After a Bankruptcy Filing?Bankruptcy doesn’t help people avoid all legal actions. There are a few cases that will continue despite a bankruptcy case:criminal casesdivorce and dissolution actions, andchild custody and support casesWhat Types of Lawsuits Will Bankruptcy Stop?a credit card balancecollection for medical billsmoney sought for a breach of contracta financial dispute between business partnerscompensation for a negligence-related personal injury case, such as a traffic accidentforeclosure actionthe collection of a deficiency balance for a car that was turned in or repossessed Schedule FREE Consultation! Schedule Appointment Saedi Law Group, located in Atlanta, Georgia, serves the cities of Atlanta, Newnan, Gainesville, Rome, Marietta, Duluth, Jonesboro, Decatur, Buckhead, Sandy Springs, Tucker, Stone Mountain, Lawrenceville, Roswell, Norcross, Alpharetta, Dunwoody, Conyers, Lithonia, Stockbridge, Douglasville, Peachtree City, Smyrna, Kennesaw, and Forest Park, as well as Fulton County, DeKalb County, Cobb County, Gwinnett County, Henry County, Clayton County, Fayette County, Forsyth County, Cherokee County, Douglas County, Newton County, Rockdale County, Hall County, and Floyd County, GA.We invite you to contact us either online or by phone at 404-889-8663 to schedule a free confidential consultation to review your personal financial situation and what options we can provide to protect you from creditors. For additional information about bankruptcy please also check out our YouTube Channel which has up to date vlogs on issues related to personal bankruptcy.