If you currently have a pending lawsuit against you and are in extreme financial distress, you might be considering bankruptcy as a way out. Before you choose bankruptcy, though, you should find out the effects it would have on the pending lawsuit that was filed against you. If filing for bankruptcy would help you with this, then it might be a good idea to choose this option. If it would not help, you may want to look for a different way out.
The initial effects of filing for bankruptcy
When you fill out all the documents and sign them all, your lawyer will file them with the court. As soon as this occurs, the court will issue something called an automatic stay, and the court issues this to every listed creditor on your paperwork, including anyone who filed a lawsuit against you. The purpose of the automatic stay is to stop all collection efforts from creditors during this time frame. The automatic stay will last for months or years, depending on the branch of bankruptcy you use, and it will prevent all your creditors from pursuing collection efforts. This means that anyone who filed a lawsuit against you must temporarily stop pursuing you for money or anything else related to the lawsuit.
The types of lawsuits bankruptcy that stop permanently
There are certain types of lawsuits that bankruptcy will completely stop, and this means you can get out of paying the money you owe for the lawsuit if it falls into this category. A common type of lawsuit is one that involves a credit card company suing a person for a balance owed that the person will not pay. This type of lawsuit would stop permanently during bankruptcy. Another example of a type of lawsuit that would permanently stop is one that involves a business partner suing his or her partner for money.
The types of lawsuits bankruptcy that will not stop permanently
Additionally, there are certain types of lawsuits that cannot be stopped permanently through bankruptcy. These include lawsuits for child support or alimony and cases that involve criminal charges. If you are involved in a lawsuit like this, filing for bankruptcy will not offer a permanent stop to the case.
You should evaluate your financial situation, including the type of lawsuit you have against you, before you decide what to do. If you would like advice about your situation, contact a bankruptcy lawyer such as Robert Bruce Jones Attorney today.
Share22 January 2019
People with an eye for property can make a great deal of money buying a house, fixing it up and then selling it for a profit. However, there are many legal issues involved in this kind of pursuit. I am an attorney with experience in real estate, and I have helped many clients learn the legal details involved in flipping property. This blog will help you understand what you need to know when you are buying and selling a home as well as information about paying taxes on money made and property owned. Flipping houses can be a very profitable activity as long as you know how to do it legally.
