Legal Question in Bankruptcy in Alabama

Re: Sueing in small claims court

The "important" aspect of your potential defense is what your CONTRACT actually says. You need to pull it out and look at it. Does it allow you to cancel the contract??? If not, then regardless of when you told them to cancel, you would still owe for services.

If your contract allows you to cancel the services you need to see if you are required to give notice in any specific manner (i.e. certified mail, 30 days notice, a certain address, etc.).

You have to comply with the terms of the Contract. Even if you CAN'T pay, it doesn't matter because you signed a contract.

If you properly terminated your contract pursuant to the terms of the contract, then you should file an answer with the Court and go and tell the Judge that you had previously cancelled the services.

If your entire financial circumstance is dire, you could always file for bankruptcy and discharge the $900.00 debt. Although our firm practices in consumer bankruptcy (Chp. 7 & 13), I DO NOT ADVISE YOU TO FILE FOR BANKRUPTCY over only $900.00. It is NOT worth it and will mess up your credit for 10 years. It also costs more than $900 to file for bankruptcy anyway ($909.00 is the going rate for a Chapter 7).

If you do not defend the lawsuit, which means you MUST SEND IN AN ANSWER TO THE COURT AND THE ATTORNEYS within 14 days, then a judgment will be issued against you. This judgment would become a lien upon any real property you own. You would also be subject to garnishment of your wages or bank accounts and the potential seizure of your automobile if you do not owe any money on it.

Depending on the firm that is suing you, if you allowed a judgment to be obtained against you, the law firm might work out a private "payment plan" so that you can pay on the debt.

As you are not a client of our firm and have not entered into an attorney-client relationship, the above information is provided merely as illustrative of the potential responses or options that might be available based upon the above fact situation.

The Cahaba Law Group LLC

Randal S. Ford

205 / 759-3232