To review, your five options when sued include the option of bankruptcy to wipe the debt out.
1. File bankruptcy
2. Fight the case on your own without hiring a lawyer
3. Settle the case on your own without hiring a lawyer
4. Hire a lawyer to fight the case for you
5. Hire a lawyer to settle the case for you
Filing for bankruptcy is an extreme solution. When needed, it is extremely effective.
But when not needed — it is way too much “overkill.”
Use bankruptcy when no other options are available or will work for you. When your world is crashing down on you financially and you have no other good choice.
The advantage of bankruptcy is it will (in a chapter 7) wipe out the debt. You also will be done with the lawsuit.
The disadvantages include damage to your credit reporting, having to say “Yes I have filed bankruptcy” when asked on a loan application, and potentially losing your home, an inheritance that might come, etc. as the court gathers your assets and compares your assets to your liabilities.
When it makes sense, bankruptcy is the “do over” button that lets you restart your life.
But make sure you look at your other options before choosing bankruptcy.
If you have questions about bankruptcy or the other options you have when sued in Alabama, give us a call at 205-879-2447 and we can set up a time to chat by phone or person. Or you can contact us through our website AlabamaConsumer.com and we will get right back to you.
Best wishes as you evaluate your choices!
John Watts Birmingham, Alabama