When creditors file lawsuits, debtors rarely respond. Debtors know that they owe money, and that they may have no ground to stand on in terms of defending against the lawsuit. Unfortunately, not responding allows the creditor to obtain a judgment, which can be used to seek bank account garnishment or levies against other property. Filing bankruptcy stops lawsuits and stops garnishment.
Has a creditor threatened wage garnishment? In Texas, wage garnishment is not actually allowed. Unfortunately, many large, national employers are not aware of this fact. Creditors will try to take advantage by seeking to enforce their judgment in another state. Filing bankruptcy prevents any such attempts from moving forward.