Lawsuits in Bankruptcy
A Roseville Attorney Discusses Lawsuits in Bankruptcy
Did you recently receive a summons for a lawsuit initiated against you by one of your creditors? Due to personal financial hardship, whatever their circumstance may be, many consumers have been relying on credit cards to meet their basic living expenses; then found themselves unable to make payments on those cards. As many consumers come up against financial hardships this winter, bankruptcy may be an option for freeing themselves of a lawsuit, as well as, other debts. As soon as a debtor files for bankruptcy, a waiting period called the automatic stay goes into effect. During this period, both lawsuits against a debtor and informal attempts to be paid by a debtor are temporarily prohibited. Thereafter, depending on the chapter of bankruptcy, and type of debt, a debtor qualifies for; the lawsuit may simply be discharged with no further action against the debtor for pre-bankruptcy debts being permitted.
On the other hand, the automatic stay may not necessarily apply to actions by the debtor. Therefore if for example a debtor has a pending lawsuit against someone else, that action will generally continue on. The automatic stay, however, does apply to counterclaims. This means that if other parties in the debtor's litigation have filed counteractions in that same dispute, the counterclaims could not generally proceed. Parties seeking relief by asserting a counterclaim would need to request that the stay be lifted.
If you have questions regarding Bankruptcy in Sacramento please contact us at (916) 492-6020 in Sacramento or (916) 724-1690 in Roseville for a free consultation or visit www.bkanswers.com and we can connect you with one of our experienced Sacramento Bankruptcy Attorneys. After you have spoken with one of our Sacramento bankruptcy attorneys, we can schedule you for a free face to face appointment in an office location nearest you. Our team of Sacramento Bankruptcy Lawyers can assist you with all aspects of your bankruptcy or legal debt settlement case. If you have questions about filing a Chapter 7 bankruptcy, a Chapter 11 bankruptcy, a Chapter 13 bankruptcy, or would like to learn more about bankruptcy litigation, legal debt settlement, mortgage modification, lien stripping, cram down, stopping a foreclosure, wage garnishment, asset protection, discharging a debt, etc. we can help! We have bankruptcy attorneys located throughout California and Oregon who can assist you with all of your debt resolution questions. Please feel free to complete our free online bankruptcy evaluation and we can quickly determine if you are a qualified candidate for bankruptcy. We look forward to hearing from you, Sacramento and Roseville!
