“Can filing bankruptcy stop a lawsuit against me?”

“Can filing bankruptcy stop a lawsuit against me?”

"Can filing bankruptcy stop a lawsuit against me?"Bankruptcy normally will stop a lawsuit that has been filed against you.

When you file for bankruptcy, as a general rule all lawsuits will be “stayed” or stopped while your bankruptcy petition (i.e. your case or petition) is considered by the bankruptcy court.

This means that unless a judgment has been entered against you, then nothing will happen to the lawsuit until the bankruptcy court decides whether your debts will be discharged or not discharged.

If your debts are discharged, then the lawsuit will normally go away.

So think of bankruptcy as both a temporary and permanent solution to a lawsuit that is filed against you by a debt collector, creditor, etc.

The temporary part is the lawsuit is frozen or “stayed” so nothing will happen while your bankruptcy case is considered.

The permanent part is if you qualify for a discharge of the debt you have been sued on — and a discharge means the debt is forever gone — then the lawsuit will be killed and you will not have to deal with a judgment, going to court, etc on the lawsuit.

I will say this.

It is true a bankruptcy can do all of this.

But it is also true that many people use a bankruptcy when they should be using less extreme measures to solve the issue of a lawsuit.

Especially if the lawsuit is filed by a debt buyer/debt collector.

Often you can win these lawsuits as the typical debt buyers (LVNV, Midland, Portfolio, Cavalry, etc) often cannot or will not prove they own the debt which is essential to winning the case against you unless you default by not answering the lawsuit.

When appropriate, bankruptcy is extremely effective but when make sure you sit down with a financial protection attorney who can advise you on both the option of filing bankruptcy and your other options so you can decide which is the best option for you.

Keep in mind you have five potential options when sued in Alabama by a debt collector:

  1. File bankruptcy which is what we have chatted about in this article;
  2. Fight the lawsuit on your own without a lawyer;
  3. Settle the lawsuit on your own — without hiring a lawyer;
  4. Hire a lawyer to fight the lawsuit to try to win your case; and
  5. Hire a lawyer to settle the case for you.

Contact Us.

You are welcome to call us and speak to a live human being at 205-879-2447.

You can also  contact us through this website and we will get back with you right away.

Do keep in mind we can only help consumers who live in Alabama.

If you live in Alabama we will be happy to help you understand your options.

Thanks for reading, and have a great day!

-John G. Watts

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