STOPPING LAWSUITS THROUGH BANKRUPTCY
If you are sued by a creditor or other form of the plaintiff, filing for Bankruptcy puts a stop to lawsuits under the powers of the Federal “Automatic Stay.” Further, a successfully discharged bankruptcy eliminates the liability from which the lawsuit arose, so no one can ever sue you for the debt after the bankruptcy is completed. If anyone has filed a lawsuit against you, you should consult with our office immediately to determine whether filing bankruptcy is a good option in your case.
If I can get Rid of the Liability From a Lawsuit, Can’t I Just Wait to File for Bankruptcy until I Feel Comfortable?
While you can certainly wait to file what you do not want is for a plaintiff to win a lawsuit against you and obtain a judgment. And if you do not fight the lawsuit, or fail to show court, the plaintiff will automatically win, and they will get what is called “Default Judgment” against you.
What Is the Danger of a Plaintiff Obtaining a Judgment Against Me?
There are dangers if a creditor obtains a judgment. If a creditor obtains a judgment for monetary damages, they can do the following: (1) Record the judgment against any real property (homes, business establishments, farmland, etc.) that is in your name. The judgment acts as a lien, and the creditor may eventually foreclose on the property if they so choose unless the lien is paid off; (2) The plaintiff may obtain a wage garnishment order so that a portion of your paycheck is paid to the Creditor until the debt is paid off; (3) The plaintiff may obtain a bank levy and siphon funds from your bank account; (4) They may take other property that you own.
Get a Free Consultation
Se Habla Español
Our firm is designed to take care of our customers during a traumatic time. That includes offering free consultations and discounted rates for our services.
The fact that we care about our clients helps us to better work for them, advocate for them, and, when necessary, fight for them.