• Home
  • About Us
  • Practice Areas
    • Personal Injury
      • Auto and Motorcycle Accidents
      • Trucking Accidents
      • Bicycle and Pedestrian Accidents
      • Premises Liability
      • Dog Bites
      • Uber and Lyft Accidents
      • Wrongful Death
      • Elder Abuse
    • Lemon Law
    • Bankruptcy
      • Chapter 7
      • Chapter 13
      • Chapter 11
      • Creditor Representation
      • Lender Representation
  • Attorney
  • Testimonials
  • Blog
  • Contact
  • PAYMENT
  • call Us Today
    (310) 444-9444
Katz Law
Free Consultation

Will Bankruptcy Stop a Lawsuit that Was Filed Against Me?

April 3, 2020
Uncategorized

Let us discuss the effect of Bankruptcy on pending or imminent lawsuits. In this article, we will try and focus on lawsuits concerning credit card debts. As more fully explained below, a bankruptcy (no matter what chapter) will put a halt on any lawsuit. Additionally, bankruptcy may also get rid of the debt underlying the lawsuit.

A Bankruptcy Could Stop a Lawsuit Through the “Automatic Stay”

The “automatic stay” is a protection afforded by the bankruptcy Code to all individuals who file a bankruptcy. Like its name, the effect of the automatic stay is that all collection actions against the bankrupt Debtor must stop. Although creditors can seek termination of the automatic stay by filing a Motion with the Court, said process takes at least a few weeks. Generally, however, the Bankruptcy Court will not terminate the automatic stay unless there is good reason to do so.

An additional benefit of the automatic stay is that creditors are prevented from filing a lawsuit against the Debtor while the automatic stay is in effect. Even if a lawsuit was filed before the bankruptcy, the filing of the bankruptcy puts a stop to any lawsuit. Attempts by the creditor to resume the lawsuit in the fact of the automatic stay could result in sanctions imposed against the creditor for violation of the automatic stay.

Credit Card Lawsuits and the Automatic Stay

Approximately 80% of our clients who contact us regarding a pending lawsuit are subject to a lawsuit by a credit card company for unpaid debt. In Chapter 7 cases, which are the most common types of bankruptcy cases, credit card debts are almost always wiped out entirely. This means that bankruptcy not only provides the benefit of stopping any lawsuit against the Debtor, but it also wipes out any debt that gave rise to the lawsuit. This is why individuals who are subject to a lawsuit for unpaid debt often find that Bankruptcy is the best option for them.

One Should File a Bankruptcy in Los Angeles When There is an Imminent Lawsuit or a Foreclosure

There are situations which require an immediate and emergency filing of a bankruptcy in Los Angeles. For example, if a creditor has filed a lawsuit against you, you may want to file a bankruptcy sooner than later. It is preferable that the bankruptcy be filed before a Judgment is entered in the case (a finding by the Court in favor of the Creditor) and liens are placed on properties.

Want to Learn More About When You Should File a Bankruptcy, Consult With a Los Angeles Bankruptcy Attorney Now!

If you or your loved one is considering bankruptcy, give us a call now. We would be happy to talk to you. Also note that in light of social-distancing, we are willing to conduct our free consultations by phone or by video. Just call us to set up an appointment.

Call us now at (310) 444-9444 for a FREE CONSULTATION!

 

Share
San Fernando Valley Office (Headquarters)

5850 Canoga Ave., 4th Floor, Woodland Hills, CA 91367
Phone: (310) 444-9444 / (844) KATZ-LAW
Fax: (310) 382-2110

Get Directions
West LA Office

11620 Wilshire Blvd., 9th Floor, Los Angeles, CA 90025
Phone: (310) 444-9444 / (844) KATZ-LAW
Fax: (310) 382-2110

Get Directions
Testimonials

Katz Law is unlike any of these attorneys you see on billboards. You are not just another number. They kept me updated about my case from beginning to end, and I was able to a settlement much higher than what I hoped for. I loved the fact that someone was always available to speak to me and I never felt like a stranger. What more can I ask for in an attorney?

Jennifer P. , Personal Injury Client, Email

I have worked with Lior Katz and Katz Law for several years now and have nothing but good things to say. Katz Law has treated me like family from day one. When I have a complicated matter, I know who to go to.

Esther S. , Bankruptcy Client, Email

I had an amazing experience with Lior Katz representing me. A true professional. Strong work ethic's. Returned my emails within 10 minutes. Perfectionist, professional, Truly cares about his clients. I am 100% satisfied. He's been a strong blessing in my life.

David R. , Bankruptcy Client, Yelp.com

I hired Katz Law to represent me after I was rear ended in a small accident. They have been very responsive and able to answer all my questions. They set me up with a doctor and did not charge me anything to start the process. Glad I finally found such a nice attorney and I feel like I am in great hands. Also a beautiful and clean office building... it's nice when someone else takes care of all the headache involved with a case, and this firm did just that. I would definitely recommend this firm

Johnatan P. , Personal Injury Client, Yelp.com

This office represented me after I was involved in a car accident. I didn't know what to do and decided to give them a call after reading their reviews on Yelp. Thank god I did that. They were very responsive to my emails and got me a settlement that is much higher than what I thought I would get. They also helped me negotiate my medical bills. I am planning to recommend them to all of my friends and family.

Karla L. , Personal Injury Client, Yelp.com
More Testimonials

Copyright Katz Law, A Professional Corporation © 2021. Disclaimer

  • Home
  • About
  • Attorneys
  • Blog
  • Contact Page
  • Home
  • About Us
  • Practice Areas
    • Personal Injury
      • Auto and Motorcycle Accidents
      • Trucking Accidents
      • Bicycle and Pedestrian Accidents
      • Premises Liability
      • Dog Bites
      • Uber and Lyft Accidents
      • Wrongful Death
      • Elder Abuse
    • Lemon Law
    • Bankruptcy
      • Chapter 7
      • Chapter 13
      • Chapter 11
      • Creditor Representation
      • Lender Representation
  • Attorney
  • Testimonials
  • Blog
  • Contact
  • PAYMENT