If you have been served with a credit card lawsuit, you may consider filing for bankruptcy. You might be considering bankruptcy if you were served with a credit card lawsuit.
The Automatic Stay
The Federal Automatic Stay is invoked immediately after bankruptcy filings are made (unless the bankruptcy filings have been too recent). What is the Federal Automatic Stay? Your creditors are prevented from pursuing further collection efforts by the automatic stay. It is effective on the second day you file bankruptcy. Your creditors might not be notified that you filed for bankruptcy until approximately one week after you send the paperwork by mail.
Your creditors will be unable to collect any future debts. This means that they cannot continue with the lawsuit. Some creditors might not be able to dismiss your case until you receive your bankruptcy discharge.
Stopping the Lawsuit in a State Court (Or Federal Court)
Your attorney should notify the state or federal court as soon as you file bankruptcy. This will ensure that your lawsuit is not pending. This is something we do for our clients. However, if you are a bankruptcy pro-se and need to file additional paperwork, you might have to do it yourself.
After your discharge is finalized, the creditor can dismiss your lawsuit against you. This is because your bankruptcy discharged all your debts.
This article was written by Alla Tenina. Alla is a top Sherman Oaks personal injury lawyer and the founder of Tenina Law. She has experience in bankruptcies, real estate planning, and complex tax matters. The information provided on this website does not, and is not intended to, constitute legal advice; all information, content, and materials available on this site are for general informational purposes only. Information on this website may not constitute the most up-to-date legal or other information. This website contains links to other third-party websites. Such links are only for the convenience of the reader, user or browser; the ABA and its members do not recommend or endorse the contents of the third-party sites.