Bankruptcy and Lawsuits Sometimes Do Mix
Most shrewd consumers on the brinks of bankruptcy know that filing will grant them an “automatic stay”, protection against lawsuits from creditors, and even personal injury lawsuits in the case of a bankrupt company.
This protection applies to both lawsuits a creditor can potentially file regarding the debt and pending lawsuits filed prior to the bankruptcy. Bankruptcy’s automatic stay is a federal debtor’s right, that creditors are given notice of and a window of time to dispute in court. If creditors choose to disobey the automatic stay, they can face serious penalties and legal consequences…
Since predatory creditors are such a common injustice to the average indebted American, there are set fines that they must pay in the instance of proven unjust harassment. The few creditors brash enough to persist harassing you even after you inform them of your bankruptcy and corresponding case number might claim to be a federal official, or offer you credit if you reaffirm your debt. Do not relent in reaffirming your debt! You can potentially turn the tables and sue predatory creditors who continue their assault after your bankruptcy: ask one of our Legal Helpers attorneys for advice.
If you are the target of a lawsuit by creditors or another party, paying attention to deadlines can make or break the strength of your automatic stay. Most states make a judgment after 45 days of the day you’ve received notification of your lawsuit whether to go to court. If you file for bankruptcy at the last minute, that judgment can override the automatic stay protection.
If you know for a fact that you will soon be taken to court by creditors and commanded to pay out the ear, don’t waste another minute: contact one of the skilled attorneys at Legal Helpers to file for bankruptcy. They will guide you every step of the way, giving you the protocol in how to best handle your bankruptcy. For instance, if you are yet to file, do not inform or threaten a creditor right back with your intent to file! Lowering yourself to their standard of conduct could potentially hurt your case in U.S. bankruptcy court.
Be above and one step ahead of the creditors: acquire the legal assistance you require with Legal Helpers. Call our attorneys today for a free initial debt consultation at 1-800-260-1402.
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