While most of us are aware that credit card companies are persistent with their debt collections, not everyone is aware that they can even sue. Yes, a credit card company can sue you over the collection of your unpaid credit card bill. However, this is usually not their first line of collection and you do have options to prevent or avoid legal action.
Whether you have already received a legal notice of being sued for your debts, or you are simply just beginning to receive debt collection calls, bankruptcy can help. Filing for bankruptcy can put a stop to credit collections, wage garnishments and even pending legal actions. How? The automatic stay.
When you file for bankruptcy, a legal issue is ordered that halts all other legal actions against you regarding your debts. Creditors cannot contact you or make any further collection attempts. The idea is to terminate other actions against you and provide you with the opportunity to resolve your debts in the bankruptcy process. Whether you are filing for bankruptcy in Dallas, or anywhere in the United States, bankruptcy can be a valuable tool against creditors.