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Eric L. Bolves, Esq. |
What Can We Do About Lawsuits and Judgments?From the moment a Bankruptcy petition is clocked in at the courthouse there is an automatic injunction or "Stay" that goes into effect. From that moment, creditors must stop all attempts to collect from you including lawsuits. The Court will send out notices to all the creditors. Once a creditor is on notice that a bankruptcy has been filed, they must stop. They can't sue, foreclose or take any other legal action against you outside the bankruptcy. If they've already begun a suit, they must stop it. If the law suit is already over and there is a Judgment against you, a Chapter 7 will render it uncollectable. In a Chapter 13, a 3 to 5 year payment plan will set up to pay some of the debt. If the Judgment has already been recorded as a lien against your property, that lien can be released. Return To Main MenuOffice Consultation Area
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