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Does Filing For Bankruptcy Affect A Lawsuit In Progress? | Whittier CA Bankruptcy Lawyer Explains

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Law Offices of Nicholas Gebelt

http://www.goodbye2debt.com/

Law Offices of Nicholas Gebelt
15150 Hornell St
Whittier, CA 90604
(562) 7779159

Let me first start by dealing with the situation where someone is suing you and you go into bankruptcy. Well, if someone's suing you and you go into bankruptcy, when you file that bankruptcy petition, it triggers the Automatic Stay and it puts the halt to that lawsuit.
In most Chapter 7 cases, if that happens and it's just an action to collect an unpaid credit card debt, the creditor will simply dismiss the lawsuit and that's the end of it. Remember, the creditor cannot continue to prosecute that lawsuit, while the Automatic Stay is in place. However, sometimes a creditor will go to the bankruptcy court and ask the bankruptcy judge to lift this stay, so that the creditor can return to the State Court in California (the California Superior Court) and continue the lawsuit

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