When credit cards, bank loans, medical bills and other debts
become seriously delinquent, the creditors usually send them to a collection
agency first. If the collection agency
can't collect the debt, then it may go to a collections lawyer who will sue to
collect the debt. You will know that you
have been sued in Minnesota when you receive a Summons and Complaint in
District Court or a Complaint in Conciliation Court.
When you are served with a lawsuit, it is like a slap in the
face! Please don't panic. There are things that you can do. If you dispute the debt in a District Court
case, you will probably need a lawyer to defend you. If you dispute a Conciliation Court, you can
go to the hearing yourself and explain your reason for disputing the debt to
the judge. If you don't dispute the debt
and your debts are otherwise manageable, you could call the collections lawyer
and try to make payment arrangements. If
you have other debts, it might make sense to file bankruptcy instead. A bankruptcy will stop a lawsuit to collect a
debt, even after the lawsuit has started.
If the creditor has already obtained a court judgment against you,
bankruptcy can stop the creditor from ever trying to collect the judgment
against you.
For more information regarding your specific situation,
contact Minnesota Bankruptcy Attorney Gregory J. Wald at 952-921-5802 or at
BankruptcyMinn.com for a consultation.
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