San Diego Bankruptcy Lawyers – Most law suits can be stopped or slowed down with a bankruptcy filing. Some lawsuits will be terminated altogether. The automatic stay generally brings a halt to all legal action against you. The automatic stay prevents any creditor from continuing with the lawsuit to collect from a debtor who has filed a petition.
The automatic stay acts as a court order preventing creditors from attempting to collect money owed. The biggest concern is 1) whether or not creditor can get relief from the automatic stay and 2) whether the underlying debt is dischargeable in bankruptcy. An experienced San Diego bankruptcy lawyer can answer these questions for you.
Let’s focus on the second factor. Most auto accidents, and acts of negligence generally, will be discharged. Most simple collection actions will be discharge as well. Were many consumers run into trouble is if the underlying lawsuit was predicated on fraud or intentional conduct. Depending on the specific facts of the case the debt may not be discharged. This is a very complicated area of the law and only an experienced San Diego bankruptcy lawyer should evaluate the matter. But, generally, the debt will be wiped out and the lawsuit dismissed.
Also keep in mind that different sections of the bankruptcy code can provide different types of relief. A Chapter 7 filing may wipe out the debt completely, but even if does not, you may want to consider converting to a Chapter 13. Under a Chapter 13 plan, the debt can become more manageable. The repayment plan, approved by the bankruptcy trustee, could reduce some of your other debt and get you back on your way to financial freedom. If you are being sued, or someone is threatening to sue you, you must contact an experienced San Diego bankruptcy lawyer to evaluate the matter and figure out whether or not filing for Chapter 7 or Chapter 13 is right for you.
We at the Law Office of Harold D. Thompson are San Diego Bankruptcy Lawyers dedicated to helping you get out of financial distress. If your debts are piling up and you are looking for a “fresh start” call a San Diego Bankruptcy Lawyer that will fight for your rights. Call us TODAY at 619.615.0767 or visit one of our two websites at www.ThompsonLawSD.com or www.MySanDiegoBankruptcy.com
[...] to discharge. If your debts are not wiped-out, you are still obligated to pay them. There are general public policy reasons for debts not discharged. Usually, these have to do with the nature of the obligation and how that [...]