Does Chapter 7 Bankruptcy Stop Lawsuits Filed Against Me?

Chapter 7 Stop LawsuitsIs someone suing you? Want to know if filing a Chapter 7 Bankruptcy will stop it? Then you need a consultation with a local bankruptcy attorney to answer your questions.

When you file a bankruptcy case, an automatic stay goes into effect upon filing. This prevents your creditors from performing any collection actions while the bankruptcy is pending. Most state court actions stop upon filing of the bankruptcy upon proper notice of the bankruptcy filing. The filing of a bankruptcy affects any lawsuits involving your debts and assets. 

In order to get relief from the automatic stay, your creditor must file a motion with the bankruptcy court to move forward with any collection activities. The Chapter 7 Bankruptcy will also stop garnishments where a judgement for money was awarded in a previous completed lawsuit. No matter where your bankruptcy lawyer filed the case the garnishment should stop if they file the proper motion in the case to inform the local court.

At the end of the Chapter 7 Bankruptcy, if the debt which was the basis for the lawsuit is discharged then the lawsuit itself also goes away. If however the debt is not dischargeable and no motion for relief from the automatic stay has been filed, then the lawsuit can move forward following the discharge of the bankruptcy.

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