How Will Bankruptcy Affect Pending Lawsuits?
If you find yourself in dire financial straits, bankruptcy can be your best option for achieving a fresh start. A lesser known but similarly beneficial aspect of bankruptcy is the effect it has on pending lawsuits. If you file for Chapter 7 or Chapter 13 bankruptcy, the court will issue an injunction preventing lawsuits from proceeding.
At the Phoenix, Arizona, law firm of Platt & Westby, P.C., we have been helping people with bankruptcy since 1973. We work closely with our clients, informing them of all their options as they move through the bankruptcy process.
Even good people have trouble with debt. We are here to help and will never judge you. To schedule a free initial consultation with an experienced bankruptcy lawyer, contact us today.
What Will Happen to a Pending Lawsuit if You File for Bankruptcy?
The matter described in your lawsuit may be dismissed or discharged. Or, the creditor may bring that lawsuit against you within the bankruptcy proceeding. In cases where you are the plaintiff in a lawsuit, your claim against the defendant may become an asset the bankruptcy trustee can use to settle your debts. In Chapter 13 bankruptcy, you may be able to continue pursue your suit while being subject to court and trustee supervision.
Contact Us
Bankruptcy is a very complex area of law that requires the assistance of an experienced attorney. We have the knowledge and experience necessary to help you protect your rights as you move through the bankruptcy process. To arrange a free initial consultation, call us today at 623.239.4422 or send us an e-mail.
