Yes, filing for bankruptcy can prevent someone from suing you, and can stop a pending lawsuit. For many people, bankruptcy is the final solution, but they should be considering all their options while they are still viable. Debt that gets out of control has a way of eroding solutions for dealing with the problem, the longer you delay. Speaking to a qualified debt management professional when you begin to experience financial hardship is the preferable route to take in order to achieve a positive outcome.
Filing for bankruptcy may prevent someone from suing you but that doesn’t mean bankruptcy is the most beneficial option. The goal should be to minimize potential costs and achieve a resolution that leaves you financially stable. If eliminating debt completely is your aim, it is worth exploring whether you are eligible for the most suitable bankruptcy chapter.
Lawsuits & Bankruptcy
You can file for bankruptcy if there is the potential for getting sued or a lawsuit has already been brought against you. These proceedings do not impact on your ability to pursue bankruptcy options, in most cases. There are certain elements, such as fraud, which would affect the ability to discharge debt in a bankruptcy case.
However, waiting until a lawsuit has already occurred, and has resulted in a judgment against you, is not advisable. A judgement can be a lien against your property and the creditor will have the option of requesting your wages garnished to ensure the debt repayments are made. These payments will not stop until you have filed for bankruptcy and the bankruptcy filing results in an automatic stay of collection against you. There is also the risk of a creditor placing a lien against property, which will further complicate a bankruptcy case in regard to whether the lien is removable.
Debt resolution may be preferable to going through a lawsuit. It is important to understand whether the creditor’s threat of a lawsuit has any legitimacy and if negotiating repayment is a viable option in your circumstances. You may wish to discuss your options with a qualified debt relief agency.
You will find the team at the offices of H. Lehman Franklin P.C. approachable and understanding when you are seeking advice on managing overwhelming debt. H. Lehman Franklin and Kimberly S. Ward have the experience and tools needed to guide you through a difficult financial period in your life. If filing bankruptcy is the right decision for you, we will provide all the support you need throughout the process. Bankruptcy is a complex process, regardless of individual circumstance, so you need a lawyer who has the necessary expertise to represent your best interests. Reach out to H. Lehman Franklin P.C. today at 912-764-9616 or email us at firstname.lastname@example.org to discuss your financial situation in greater detail with one of our team members. We are committed to helping you reach a place of better financial stability.