Will filing bankruptcy stop a lawsuit or garnishment by a creditor?

Yes, the filing of bankruptcy will stop or “stay” collection lawsuits against you.

If you have been sued by a creditor or debt collector and you file a Chapter 7 bankruptcy the collection lawsuit is “stayed” (like pressing the pause button while watching a movie). The debt that the creditor or collector claims you owe should be included in your bankruptcy petition (the papers filed with the Bankruptcy Court) and that creditor/collector is served notice of your bankruptcy filing by the Clerk of the Bankruptcy Court.

At the time of your filing an “automatic stay” (automatic pause) goes into effect and all creditor/collectors that are included in the bankruptcy petition and receive notice must stop attempting to collect on any debt they claim you owe. This includes any pending lawsuits.

If you receive a discharge in your bankruptcy case that means the debt is no longer owed and the collection lawsuit against you would have to be dismissed.

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