If you have been served a summons by one of your creditors, let the Payson bankruptcy attorney from McDonald law Offices explain the process to you. When you are served, the clock starts running. It will only be a matter of time before the creditor obtains a judgment against you. Once you are served, you will have 20 days to file an answer. If you do not timely file an answer, the creditor will obtain a default judgment against you. If you are employed your employer must start withholding 25% of your net pay for the benefit of the creditor.

The Payson bankruptcy lawyer at McDonald Law Offices understands the Arizona bankruptcy laws. We will explain the process of filing either a Chapter 7 bankruptcy or Chapter 13 bankruptcy. If the bankruptcy is filed before the creditor obtains a judgment, the lawsuit will be stopped. If you file bankruptcy Chapter 7 or bankruptcy Chapter 13 after the garnishment has started, our Payson bankruptcy attorneys can stop garnishment as soon as your case is filed.

Our Payson bankruptcy lawyers will explain to you how garnishment is not the only option that the creditor has. The creditor may also serve your bank. If served, your bank will freeze your account to pay the debt. The freezing of your account may cause you to be unable to pay your other debts and monthly living expenses. If you file bankruptcy through our Arizona bankruptcy attorney, you will stop the creditor from serving your bank and freezing your account.

You will have another dilemma once the creditor has obtained the judgment. The creditor may have you served with a court order requiring that you appear at what is called a debtor examination. If served and you have not yet filed bankruptcy, you will be required to attend the examination. If you fail to attend the examination, the court may enter a bench warrant for your arrest. Our Arizona bankruptcy lawyer will explain how filing bankruptcy will stop the proceeding and eliminate your requirement to appear at the debtor’s examination.

Give us a call today and let us show you how to stop lawsuit now. After talking with us you will come away with a clear understanding of your options. You will understand how both chapter 7 and chapter 13 can be used to give you a fresh start.

A chapter 7 bankruptcy will help you if you simply can no longer afford to pay the credit card debt, medical debt, pay day loans and other unsecured debt that you have. A chapter 7 bankruptcy is the most common type of bankruptcy. In chapter 7 the goal is to discharge of as many debts as possible so that you can resume being able to afford to pay for your regular monthly expenses and get a fresh start.

If your circumstances suggest that a chapter 7 is not your best option, one of our Payson bankruptcy lawyers will discuss the filing of a chapter 13 with you. Unlike a chapter 7, a chapter 13 is a re-organization where instead of making separate payments each month to all of your creditors as you are currently doing, you will make one payment per month to a trustee that will be appointed by the bankruptcy court. The trustee will then pay your creditors for you under court supervision. When you file chapter 13 you can stop repossession, you can stop foreclosure and you can keep the creditors off of your back as the trustee pays the creditors for you.