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Can I File Bankruptcy If I’m Currently Being Sued?

Yes, lawsuits filed by creditors are a frequent trigger for a bankruptcy filing. The automatic stay issued by the judge will stop the collections efforts and temporarily halt the lawsuits.

For Chapter 7 cases, many types of debt are fully discharged and the lawsuit will end entirely.

In Chapter 13, some debts may still be subject to collection if you fail to meet the repayment obligations.

If you are being sued for other reasons, it may be to your benefit to wait until the case concludes to file for bankruptcy protection.

Bankruptcy can be used to discharge legal judgments against you, but only after the case is resolved.

If you file now and are later slapped with a damage judgment, you’ll have fewer options for dealing with it.

Bankruptcy is a strategic financial move, and the attorneys at Zelenitz, Shapiro & D’Agostino can help you develop a bankruptcy plan that deals with the most debt possible.

Call us today at 718-599-1111 for a free consultation.