Very frequently someone sues someone else for an unpaid obligation. We specialize in both prosecuting and defending these types of consumer and collections cases, from pre-suit settlement demands through post-judgment enforcement. The following are some common questions and answers that may be helpful as an overview for your consumer collections case. After reviewing this overview, you should consult with Counts Law Firm to better understand all of your legal options.

1. What if a creditor sues you for money you owe?

If the debt is under $5,000 (up to $7,500 if the creditor is an individual), the creditor can sue you in small claims court. You cannot be represented by a lawyer in the small claims court, but you can retain a lawyer to advise you before the hearing. Lawsuits for larger amounts are filed in a superior court, where it is best to have a lawyer represent you.

As soon as you receive a summons, you should: Consult a lawyer and have your lawyer contact the lawyer hired by the person suing you and negotiate to settle the debt, into a discounted lump sum or a series of small payments over a period of time. Additionally, the lawyer can file the response to the lawsuit.

2. What if you lose a lawsuit?

If you receive a court summons because you are being sued, do not ignore it. If you do not respond within a certain time, you will lose the case by default and your property, bank accounts and 25% of your monthly net income can be garnished.

If the suit demanded money and you do not pay the amount that the judge ordered you to pay, you may be subjected to a debtor examination and your assets can be levied.

3. Can a lawyer protect your property from collections?

You can claim that some property is exempt and it cannot be taken from you.

When you receive a notice that your property is being attached, you have 10 days to deliver a Claim of Exemption form from the Court Clerk's office to the Sheriff. This form describes the property and explains why it legally cannot be attached. The creditor can either accept your claim or challenge it at a court hearing. At the hearing, your lawyer must prove that the property is exempt. If you do not go to the hearing, you automatically lose the exemption.

You and your spouse together can claim exemptions for:

• Retirement, disability and health insurance, workers' compensation, welfare, unemployment, union and other benefits that are needed to support your family.
• Household furnishings and clothing that your family needs.
• Life insurance policies with a cash value of up to $10,000 each
• Home equity up to $50,000 if you are single, $75,000 if family unit, or $150,000 if 65 or older, disabled, or low income.
• Automobile equity up to $2,500.
• Work equipment and tools up to $6,000 ($12,000 for items used by both spouses who do the same work).
• Jewelry, heirlooms and works of art up to $6,000.
• Salary up to 75%.
• Bank accounts up to $2,500 each in which your Social Security payments have been directly deposited.

4.  How can a lawyer help you collect money you are owed on a judgment?

Even when you "win" in court, the opposing party may not just pay you the amount of the judgment. You may have to take additional steps to collect and enforce the judgment.

1. Individuals and businesses that are solvent usually pay judgments that are entered against them.
2. If an individual or business debtor is insolvent or avoids paying a judgment, post-judgment enforcement is necessary.
3. We conduct post-judgment discovery (debtor examinations, interrogatories, requests for production of documents, bank account searches, private investigation) to uncover a debtor's sources of income and assets.
4. We garnish the debtor's wages up to 25 percent of the debtor's paycheck.
5. We garnish the debtor's bank accounts.
6. If you hold a judgment against a company, we have the sheriff seize the money in the company's cash register, and the machinery, equipment.
7. The time period for collecting judgments is ten years and then it can be renewed for another ten years. So even if the person that you have a judgment against does not have any income or assets today, they may have income or assets in the future.
8. If the debtor files bankruptcy, your ability to collect your judgment is usually cut-off.
9. You will need to retain an attorney to assist you with your collection efforts.