When debt piles up, there are sure to be negative consequences. If a creditor in Murfreesboro sends your debt to collections for overdue payments, this can be a fast track to a lawsuit. Default judgments happen when you are sued for money owed to a creditor and don’t respond. A judge can grant the creditor the ability to initiate wage garnishments or place liens on your property.
No one wants to get behind financially, so it’s a good idea to partner with a skilled Tennessee debt defense attorney. This legal professional can help you settle your debts and get back on track with your finances.
Negotiating Debt Payments in Murfreesboro
If a judge has ruled in favor of your creditor, a Tennessee debt defense attorney can help you settle the judgment. A creditor may agree to a lower payment or adjust it in a way agreeable to both parties if the creditor feels the debtor may file for bankruptcy. Although a settlement usually requires a large lump-sum payment, you can avoid wage garnishment and pay less money.
When a settlement is arranged, your attorney will be sure to get a copy of the agreement stating the amount agreed upon and that it fulfills the entire debt. The creditor will then file a satisfaction of judgment with the court.
Challenging a Judgment in Davidson County
If a judgment is made in error against you in Davidson County, you may be able to challenge it. If you were unaware of the lawsuit against you or you weren’t notified of the lawsuit, a skilled Nashville debt defense attorney could help you get the judgment set aside by the court. Seeking legal advice to enter a response quickly is very important. If a judge has ordered that a wage garnishment is a tool a creditor may use to receive payment on the debt, garnishments can start as soon as a month after the judgment occurs.
Legal counsel will also be able to help you with the stipulations and time restraints on challenging a lawsuit. If you are challenging debt because you disagree the debt is yours or because you were not made aware of a lawsuit against you, there is a limited amount of time to act. If you don’t file a motion in response to the judgment within a specific timeframe, you won’t get the judgment set aside or even amended. Your attorney can also help you find evidence to back up your claim, so the outcome is more favorable for you.
Filing Bankruptcy in Columbus
If you think there is no way to handle the default judgment and you cannot afford a lump sum payment or other payment methods ordered in the judgment, an attorney can help you decide if bankruptcy is the right option for you. If you act quickly, a hold can be put on all actions ordered by the judgment, so wage garnishments and liens will be stopped before they begin. Bankruptcy will have a negative impact on your credit report, but your debt will get discharged, and you can begin working with a blank slate. This also benefits you by getting rid of multiple creditors on your back, especially the annoying collections calls you may be receiving.
If an attorney thinks you may not be at the point of bankruptcy, they can help by advising you on more options like a debt management plan or debt consolidation.
If you reside in Davidson County, Columbus, or the greater Nashville Area, contact Fitzgerald & Campbell, APLC to help you fight against a default judgment. The skilled attorneys at Fitzgerald and Campbell know that financial hardship is stressful and court appearances can be daunting. Give them a call today at 615-845-4595 or complete the contact form to request a consultation.