When you are facing financial struggles, it is common for collection lawsuits to pile up against you. Litigation can be stressful and overwhelming. Depending on your individual circumstances, filing a Chapter 7 or Chapter 13 case may be the answer to your troubles. As soon as you file a bankruptcy, the automatic stay goes into effect and it prohibits further collection efforts against you, including lawsuits.
Another benefit of filing a bankruptcy is that it provides you a means for dealing with your debts in a comprehensive way. All of your creditors must be included in your filing. A Chapter 7 filing allows you to discharge or eliminate the majority of your debts. A Chapter 13 provides you a way to reorganize your finances and repay your creditors, partially or in full, through a repayment plan.
So, what happens to the lawsuit when you file bankruptcy? The suit is stayed or put on-hold while your bankruptcy case is active. If the lawsuit is a collection matter seeking only a monetary judgment against you, it is likely that you will be able to discharge the debt involved in the suit. This means when you emerge from bankruptcy, the lawsuit is no longer pending against you.
It is important to understand that some lawsuits are not halted by a bankruptcy filing. Common examples include certain criminal matters or child custody suits. If you have a lawsuit pending against you and you are considering filing a Chapter 7 or Chapter 13 case, it is important to confer with an experienced attorney at DeLadurantey Law Offices to determine if the lawsuit will be halted by your bankruptcy filing.
If you would like a down-to-earth approach and a lawyer who will listen carefully to all your questions and concern, call DeLadurantey Law Office, LLC,at (414) 377-0518. We serve clients primarily in the areas of Chapter 7 and Chapter 13 bankruptcies, debt negotiations and defending foreclosure actions. If you live in the area of Milwaukee, Wisconsin, call us for the debt relief assistance you need.