Lawsuits, Judgments and Bankruptcy
Lawsuits and Bankruptcy
Once you’ve been slammed with a summons, it’s time to understand the interplay between lawsuits and bankruptcy. Being sued with a lawsuit is one reason many people contemplate filing bankruptcy. It’s a factor, but only one, that should be considered if it’s Chapter 7 bankruptcy or Chapter 13 bankruptcy.
If there is a lawsuit or lawsuits against you, it may be a wise course to file bankruptcy. You’d get immediate protection of the automatic stay. This would cease all attempts to collect on the future judgment they may get, even from a personal injury attorney.
Do I answer the Summons?
If you don’t answer it, you have no defense if it goes to trial. Doing nothing could result in a judgment against you, even quicker. Contact us for more info and strategy.
Judgments and Bankruptcy
Judgment then Bankruptcy, or Bankruptcy First?
I’d suggest avoid having judgments against you, if you have the option. Sure, the bankruptcy will avoid and remove judgments, but given a choice, it’s probably preferable to file the bankruptcy before you get a judgment against you.
This is not a magic pill that fits all situations. You will want to contact an attorney in your area who can assess your overall circumstance. If you are in the Los Angeles, AV, San Fernando, Ventura or Orange County areas, just ask for help here.