I Got Served With A Lawsuit, What Now? Call 817-717-7150!
Have you been served with a lawsuit? If you have been served or threatened with a lawsuit, you may be very nervous and stressing about what can happen next. But you do not need to worry needlessly. Through bankruptcy, we can essentially make these types of lawsuits go away, and we can do it quickly.
Bankruptcy Can Resolve Your Situation Quickly –Even With A Deadline
If you’re under a deadline to respond to a lawsuit within a specific amount of time, such as within 5 days or 10 days after receiving the notice, our bankruptcy attorney and trained legal staff can help you resolve these issues before it is too late. Many people are nervous that they will be thrown in jail, or that they need to respond to the court or they will forever have to deal with this debt. That is not the case. Even if your time has already passed for responding to the lawsuit, we can still help. Regardless of whether you have responded or whether you can respond in time, our federal bankruptcy protection which is offered to you by law can deal with the lawsuit and beat the lawsuit.
Bankruptcy Protection Trumps Lawsuits
Because bankruptcy is a federal law, and because most lawsuits are based on unsecured creditor actions, the protection offered by bankruptcy will eliminate the lawsuits threat. This means that even if the court rules in favor of the creditor and grants them summary judgment, or rules in their favor, granting them a judgment against you, the bankruptcy will erase the judgment and stop any and all legal action from moving forward with regards to the lawsuit.
Received A Lawsuit?
- From A Past Credit Card?
- From a Car Accident?
- From A Broken Lease?
- From A Personally Guaranteed Business Loan?
Bankruptcy Stops Lawsuits
- The Automatic Stay Goes Into Effect, Stopping Lawsuits
- The Automatic Stay From Bankruptcy Also Stops Judgments
- Bankruptcy Prevents Other Legal Actions Like Foreclosure
- Bankruptcy Also Prevents Repossession
- Bankruptcy’s Automatic Stay Provides 45 days to cure executive contracts
- Bankruptcy Stops Garnishments From Lawsuits
- Bankruptcy Can Remove Most Garnishments From Bank Accounts If Handled Quickly Enough After the Garnishment Hit the Bank Account
Do I need To Respond To the Lawsuit If I’m Filing Bankruptcy?
In our office, most of the clients who come to us do not need to respond to the lawsuit. We can handle everything through the bankruptcy channel such that you don’t need to worry about responding to the lawsuit. Some clients like for us to file the bankruptcy before the due date for response to the lawsuit. But even if we do not respond on your behalf to the lawsuit, the bankruptcy itself will server to be the ultimate response to the lawsuit as it handles the lawsuit and will eventually cause the lawsuit to essentially “go away.”
What Type of Bankruptcy Resolves Lawsuits?
Both chapter 7 and chapter 13 bankruptcy will deal with a lawsuit, and each type of bankruptcy serves different purposes in how they handle the lawsuit. For example, some people are best served by a chapter 7 bankruptcy because they are not behind on car or home mortgage payments. For these people who qualify for a chapter 7 bankruptcy filing, they will not need to make regular chapter 13 trustee payments for a period of 3-5 years, hence making their bankruptcy more straight forward and faster to resolve.
On the other hand, some home owners who are significantly behind on their mortgage payments will be well served by a chapter 13 bankruptcy. This is the reason for this: a ch. 13 bankruptcy provides the homeowner with leeway in repaying the back payments on the mortgage. For example, if you were 6 months behind on your mortgage with $1,000 monthly mortgage payments. This $6,000 of mortgage back payments is called “mortgage arrearages.” In a chapter 7 bankruptcy, if you want to keep the house, you will be required to get the arrearages paid back and up to date by the completion of the bankruptcy, while also resuming regular mortgage payments. This means that during the 3-4 month period of the bankruptcy, you will need to resume the $1,000 mortgage payment, and also will need to find a way to come up with an extra $6,000 to get the mortgage back current by the completion of the chapter 7 bankruptcy. Whereas in the chapter 13 bankruptcy, you will be provided the opportunity to repay the $6,000 mortgage arrearages over a period of 3-5 years, most commonly over a 5 year period. This means that you divide the $6,000 arrearage over 60 months, making it $100/month. Then you will consider that the trustee will take 10% of everything run through the plan, taking $100/.9. Next there are attorney fees that are also generally included in the bankruptcy, which generally amount to about $54/month, bringing the monthly total trustee payment to get the mortgage up to date to about $165/month.