Posted on
June 5, 2009
at
4:48 am
If for example, the creditors are trying to get a judgment against me, and i file bankruptcy, would it stop the case from advancing?
Posted on
June 5, 2009
at
4:57 am
You'd be surprised as to the number of bankruptcies that are being filed these days to stop a lawsuit. It is all about the automatic stay that an approved bankruptcy petition gives the consumer. Automatic means that on the date that the bankruptcy courts approves of the petition all creditor/lender actions against the consumer has to stop.This automatic stay not only stop collections but also most legal proceedings.
Posted on
June 5, 2009
at
5:01 am
There are exceptions though, the automatic stay does not have power over some lawsuits, especially those that involve criminal prosecution or issues on child support.
Posted on
June 5, 2009
at
5:32 am
Under
11 U.S.C. 362(a) whoever is pursuing you in court may not:- take action against you and your property in connection to your debt-
FILE OR PURSUE ANY LAWSUIT AGAINST YOU-place a lien on your property-take your property to satisfy a recorded lien-repossess -discontinue any service or benefit that you are currently getting-evict youThose prohibited actions if violated maybe placed by the court under contempt or be punished.
Posted on
June 5, 2009
at
9:36 am
Good info. Also, if the lawsuit has already been filed, the automatic stay would prevent the owed creditor from executing their claim (if they have secured a judgment) through a wage garnishment, bank levy or property lien. Keep in mind that the automatic stay does not prevent or protect a person from government claims (such as taxes), civil violations or criminal proceedings.
Posted on
July 23, 2009
at
11:44 am
So it depends on what you owe I guess as to whether or not bankruptcy can stop a lawsuit. I might be denied for bankruptcy, and one of my creditors filed a lawsuit against me. What are my options then?
Posted on
July 23, 2009
at
3:56 pm
I would suggest reaching out to the law office since bankruptcy can be denied and you may not be able to take advantage of the automatic stay.If you have any money you may be able to settle the debt, or you could see what can be done to set up a payment plan.
Posted on
July 24, 2009
at
12:21 am
Can bankruptcy stop a lawsuit? Yes via the automatic stay. In the event that your bankruptcy is denied, the lawsuit pushes through, depending on the the type of debt (if it is mostly unsecured especially) maybe your lawyer can work out a repayment plan outside of the bankruptcy forum. I am not a lawyer but I think that before any trial starts, the parties are first asked to sit down in a mediation court..I'm not sure, maybe somebody else can verify that. In the mediation meeting, show the creditors your willingness to repay what you owe, they might appreciate you doing that, as lawsuits are time and money consuming. Try settlement.
Posted on
July 24, 2009
at
12:36 am
Perhaps you don't need to file bankruptcy at all to stop a lawsuit..., ask your attorney about it--if it's best to defend yourself in the court (depending on your case). Your lawyer would be able to deduce if you have a good chance of winning against the said lawsuit.
Posted on
July 24, 2009
at
12:41 am
What should the consumer do after being served a summons? What happens if the consumer fails to respond to a lawsuit in a timely manner?
