How Bankruptcy Impacts Your Lawsuit

by DeLadurantey Law Office, LLC on May 16, 2014

Courthouse columnsIf you have been sued and you are considering filing a personal bankruptcy, it is important to understand how your lawsuit will be impacted. As soon as you file Chapter 7 or Chapter 13, the automatic stay goes into effect and prevents any further collection activity against you. In other words, if you have been sued for monetary damages, your lawsuit will be halted.

While most creditors will notify the court of your bankruptcy upon receipt of notice, you can ensure the litigation stops by filing a “Suggestion of Bankruptcy” in your civil case. If a creditor or debt collector ignores the notice of bankruptcy and continues to pursue its collection efforts against you, you may be able to recover actual damanges, attorney’s fees and costs. In extreme cases, the court can award punitive damages.

Many clients are concerned with whether a creditor will pursue their claim within the bankruptcy case. While this is possible in rare circumstances (such as fraud or embezzlement matters), most creditors do not pursue their claims against a bankrupt debtor. We can review your individual circumstances and let you know if it is likely a creditor will pursue its claim within your Chapter 7 or Chapter 13 case.

If you are involved in a civil lawsuit and you are considering filing a bankruptcy case, call us to schedule a consultation. We can review your lawsuit as well as your financial situation and help you understand all of your options.

The “Milwaukee Bankruptcy Attorneys,” DeLadurantey Law Office. LLC handle Chapter 7 and Chapter 13 bankruptcies, as well as debt negotiations, debt relief, mortgage loan modifications, and foreclosure defense and debtor’s rights matters. We serve the areas of Milwaukee, South Milwaukee, West Milwaukee, Milwaukee County, and Waukesha County, including the municipalities of Big Bend Village, Brookfield City, Brookfield Town, Butler Village, Chenequa Village, Delafield City, Delafield Town, Dousman Village, Eagle Town, Eagle Village, Elm Grove Village, Genesee Town, Hartland Village, Lac La Belle Village, Lannon Village, Lisbon Town, Menomonee Falls Village, Merton, Town, Merton Village, Mukwonago Town, Mukwonago Village, Muskego City, Nashotah Village, New Berlin City, North Prairie Village, Oconomowoc City, Oconomowoc Lake Village, Oconomowoc Town, Ottawa Town, Pewaukee City, Pewaukee Village, Summit Town, Sussex Village, Vernon Town, Wales Village, Waukesha City, and Waukesha Town. Call DeLadurantey Law Office by phone at (414) 377-0518.


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