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I was sued by a creditor and do not have the money at the moment to pay. What happens now? I do not have a job for them to garnish my wages. Also, I was considering filing bankruptcy. Is there a way to do this without a laywer? I have about $ 6000-$ 7000 in credit card debt. Would anyone recommend filing bankruptcy? I cannot afford to pay this debt right now and I thought bankruptcy was the best and cheapest option.

6 Thoughts on What happens if a creditor sues you and you do not have the money to pay?
  1. jack99skellington
    April 3, 2013 at 2:27 am

    You won’t be able to file bankruptcy without money — you’ll need to pay the lawyers, etc.

    As for what will happen, they will win a judgement against you, and be able to sieze your assets (such as your house or car), any possible tax refunds, etc. etc. etc.

    Don’t you feel bad scamming a free ride. What a bummer for the rest of us who have to shelve the burden — paying higher prices to make up for it.Why not get a job, and pay your bills?

  2. knowitall
    April 3, 2013 at 3:19 am

    It is neither the best or cheapest. You need a lawyer to file Bankruptcy and it will hurt you for years afterwards in keeping you from getting a job, insurance costing more, no credit or if you can get it, the interest will be outrageous.

  3. arthur s
    April 3, 2013 at 3:31 am

    If Wall Street can be bailed out so can you.

    Call them and settle on 50 cents on the dollar and tell them to either take, write the entire bill off or you’ll file banckrupcy. Don’t worry about your credit. If you’re young you can restore it when you get back on your feet.

    Never apply for or use another credit card again.

  4. Dixie Darlin'
    April 3, 2013 at 4:26 am

    The creditor has won judgment against you which gives them the right to collect the debt by wage garnishment, attach and levy any bank accounts you have and lien any personal property.

    Wage garnishment is the easiest way to collect, if you do not have a job right now and have no assets, then they will not be able to collect.

    With a judgment the creditor now has anywhere from 3-20 years to attempt to collect the debt, depending on which state you live in. Some states allow the judgments to be renewed, so you are looking at possibly 20 years for the creditor to collect the judgment, I am sure you will have a job at some point.

    Under the The Fair Credit Reporting Act [15 USC Section 1681c] the judgment will be reported on your credit for 7 years from the date of entry, or longer, if your state has legislation which allows it report longer.

    You should never file BK over such a small debt.

  5. Yieldcurve
    April 3, 2013 at 4:52 am

    Free rides aren’t free. Judging by the fact that the creditor sued you indicates that you failed to reach out to the creditor and negotiate repayment. Big mistake. Filing for bankruptcy does not guarantee the dismissal of the debt, either. Even if a judge does dismiss it, the creditor can contest it and that costs you more money for legal fees. Your best bet is to talk to the people you owe money to and work out a reasonable repayment plan. Then GET A JOB & PAY WHAT YOU OWE.

  6. StephenWeinstein
    April 3, 2013 at 5:09 am

    Bankruptcy is the most expensive option and the second worst option (the worst option is suicide). Any option in which you stay alive without filing for bankruptcy is better and less expensive.

    The mere fact that you thought that bankruptcy was the best and least expensive option proves that you do not know enough about it to be capable of filing bankruptcy without an attorney and that you would need an attorney to file bankruptcy. A person capable of doing it without an attorney would not have made these mistakes.

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