What happens if a creditor ior second mortgage holder s trying to collect on a debt before I have filed for Chapter 7 Bankruptcy in Arizona?
When you are getting into a position where as a Debtor, you are late on your credit card. They will start to harass you with collection calls. They will send you a Notice of Default. You get behind on your debt and so then they want to sue you on the debt. They serve you with a Summons and Complaint and then you basically have 20 days to respond. Most people generally don’t respond. A bankruptcy attorney will often advise clients in this position not to respond. The idea is that you want the wheels of justice to slow the process down as much as possible. You have 20 days to respond to the complaint, and let’s say that you don’t. Then, the creditor will normally move for a Default Judgment and then you usually have like 30 days on that. Once they get the Default Judgment, of course they have to take action to enforce it, for example, garnish your wages, find out where you work, find out where your bank account is, etc. That process often takes another 20-30 days. So, as you can see, you
Related Questions
- What are the grounds for a creditor asking the Court to NOT allow a particular debt(s) to be discharged in a Chapter 7 bankruptcy case?
- What should a person do if a creditor later attempts to collect a debt that was discharged in his or her chapter 7 case?
- What if a creditor later attempts to collect a debt that was discharged under chapter 7?
