Law Office of Ruth Nelson - Seattle Bankruptcy Attorney
Law Office of Ruth Nelson
What Can Bankruptcy Do For Me?
What Can Bankruptcy Do For Me?

Can a creditor take my personal assets?

On Behalf of | Aug 9, 2018 | Creditors' Rights

If you’re in the midst of a devastating debt situation and you haven’t been making your monthly payments, the creditor can actually sue you to collect your unpaid debt. In these cases, the creditor can pursue an enforceable court judgment against you by proving that you have failed to pay a specific amount owed. If the creditor files such a lawsuit, you can fight it in court. If you fail to contest the matter, the judge may automatically rule against you.

If the creditor successfully secures a judgment against you, it can enforce the order by claiming your property. By filing the appropriate paperwork, the creditor can use the sheriff in your area to seize your property. The judgment will be paid once the property has been liquidated.

Ultimately, the sheriff’s department will arrange for the liquidation of your seized property, and the creditor will receive the proceeds. If multiple creditors are involved in the action, they will receive payment, usually in the order of when they filed their claims against you.

In some cases, as with real estate property, a lien may be recorded against your real estate property. The lien gives the creditor the right to be a paid a certain amount after selling the real estate property.

If creditors are filing lawsuits against you to collect unpaid debts, you may want to seriously consider the benefits of filing for bankruptcy. One of the primary benefits of the bankruptcy process involves the cessation of debt collection via an “automatic stay.” The automatic stay forces all lawsuits and attempts by creditors to collect on your debts (even debt collection phone calls) to immediately stop. You can learn more about the various forms of bankruptcy by reviewing our website.

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Law Office of Ruth Nelson
7742 14th Avenue NW
Seattle, WA 98117
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