Its not uncommon for lawsuits to be filed against debtors after retaining Doan Law Firm and prior to filing Bankruptcy, especially on accounts that have been delinquent for 6 months or longer. Yet as long the Bankruptcy is filed within two (2) to three (3) months of service of the lawsuit, adverse consequences such as a wage garnishments, bank levies, or real estate liens usually are not an issue. Moreover, the Bankruptcy eventually resolves the lawsuit(s). However, waiting too long can definitely be risky.
Once the Bankruptcy is filed, the lawsuit must either be stayed (put on hold) or dismissed. The Bankruptcy Automatic Stay prohibits any further continuation of the lawsuit and fully protects debtors, with certain exceptions (criminal matters, custody matters, and other matters that do not involve collecting on accounts personally against debtors). A creditor failing to stay or dismiss a lawsuit after a Bankruptcy is filed is unlawful and could result in monetary damages being paid to the debtor, including attorneys’ fees and costs.
Additionally, if you were served with a lawsuit after the filing of your Bankruptcy, PLEASE LET US KNOW IMMEDIATELY. Such unlawful activity could also entitle you to compensation, including attorneys’ fees and costs.
So if you were recently served with a lawsuit, you still have a reasonable amount of time to file your Bankruptcy Case before anything adverse can happen. Notwithstanding, it is always best to file your case sooner than later after service of any lawsuit. In doing so, be sure sure to complete your worksheets, gather all documents, complete your credit counseling course, and pay your bankruptcy balance in full within two (2) to three (3) months of service of the lawsuit.
Call or Text (760) 450-3333 or Email to schedule your FREE PHONE CONSULTATION with a Bankruptcy Attorney. Hablamos Espanol.
At Doan Law our Bankruptcy Attorneys will answer all your Chapter 7 Bankruptcy and Chapter 13 Bankruptcy questions. Doan Law Firm is California’s Largest Family of Attorneys, Specializing in Bankruptcy and Non-Bankruptcy Alternatives.