There is a gut wrenching feeling that comes over a debtor when past debts catch up with them in a way that hits them right where it hurts. Credit card lawsuits are common in situations where an old credit card debt that became late, then went delinquent, and ultimately was charged off as a bad debt. Then, the situation can become worse as the debt is sold to various collection companies, and then the ultimate sucker punch comes when the debt lands in the hands of a collection law firm who easily files a lawsuit, serves you with legal papers, and takes you to court. Many bankruptcy lawyers know this life cycle of a debt very well. They have assisted many clients, sometimes even thousands of debtors in obtaining relief from such situations.
The ultimate happens after a collection law firm gets a judgment. You may responded to the lawsuit. You may have went to court and pleaded your case. But eventually, the attorneys who are suing you for the debt will typically win what is called a default judgment against you personally for the debt. If you live in a garnishment state such as Illinois, then the attorneys may seek and obtain a garnishment of your wages, typically up to 25%. If you live in a non-garnishment state, such as Texas, then attorneys will begin looking for assets and bank accounts to levy.
The judgment will be entered as a lien in the real property records such that it will attach as a lien to any property you own in the county. Next, they troll around for your bank accounts and then, inevitably just when you have a paycheck being deposited into your bank account from a paycheck, or right as your IRS tax refund is about to be deposited into your account, they obtain a garnishment/levy on your bank account and your funds are frozen. Without the assistance of an attorney who can represent you in a bankruptcy filing, you may forfeit that money forever.