14 Mar Confronted with a lawsuit?
Did you know that filing for bankruptcy can stop a lawsuit? In fact, thousands of bankruptcy cases are filed to stop collection lawsuits as well as prevent judgments from being entered. All collection lawsuits will stop the moment the case is filed. This is because the court will enter an “automatic stay” preventing creditors from continuing their lawsuits to collect debts from you. Chapter 7 and Chapter 13 bankruptcy provide different kinds of relief, so even if a Chapter 7 won’t discharge a debt, Chapter 13 might help manage the debt and provide an affordable repayment plan. Contact us to discuss the facts about lawsuits and Bankruptcy, and to determine what your legal options are to deal with lawsuits.