Lawsuits to Collect Debt
If a debtor defaults on debts, such as credit cards or personal loans, the creditor will often file a lawsuit to collect on the debt. If a judgement is entered by the court, the creditor will often then file a garnishment action or attempt to freeze the debtors bank accounts.
Regardless of the stage of the litigation, the debtor can stop the lawsuit from proceeding by filing a bankruptcy. Upon notification of the bankruptcy, the creditor must stop the litigation.
If you would like to discuss the remedies available to you in bankruptcy, contact us for a free consultation today.