Lawsuits cause a lot of stress. Ten of thousands of lawsuits are filed every week by creditors seeking to collect on all types of debts, including credit cards, medical bills and foreclosure deficiencies. If you do in fact owe the money, there are few legitimate defenses that will prevent a judgment.

When you are served with a summons and lawsuit, you must take action immediately…it will not go away! If you fail to answer the lawsuit, fail to respond to requests for discovery, or fail to appear in court, a judgment will likely be entered against you. Even if you defend the lawsuit, you may still lose. Once the creditor has a judgment against you, your property may be taken or your wages garnished.

If you are being sued for a debt, you may want to consider filing a personal bankruptcy under either chapter 7 or chapter 13 of the bankruptcy code. Once a bankruptcy is filed, you are under the protection of the Automatic Stay. The Automatic Stay stops law suits, collection activity, wage garnishments (except for a very few exceptions like child support), foreclosures, and property seizures. Once you receive a bankruptcy discharge, a creditor can no longer collect on a debt or enforce a judgment against you.

A lawsuit is usually a warning sign that you need help. If you have been or are being sued, it's time to take action and review your legal options.