One of the major benefits of filing for bankruptcy is that it stops lawsuits dead in their tracks.
First, your creditors will warn you: "If you don't pay your past due bills," they write, "you will be sued." Then, if the bills still go unpaid, your creditors will often make good on their warnings.
You may find yourself facing a lawsuit — sometimes multiple lawsuits. And no one likes being sued.
The "Automatic Stay" Is Your Relief From The Stress Of Being Sued
Fortunately, the law provides for the "automatic stay," which goes into effect as soon as you file your bankruptcy petition. The automatic stay stops most creditors' actions against you,including home foreclosure lawsuits and collection lawsuits.
As soon as you've filed for bankruptcy, notice will be sent to the creditor and their attorney and they must stop pursuing the lawsuit or face possible sanctions in the federal court
Benefits Provided By The Automatic Stay
- Stop home foreclosure proceedings
- Stop collections lawsuits, which may prevent wage garnishment
- Prevent or stop liens that creditors take out against your property
- Prevent repossession of secured property (cars, motorcycles, boats, etc.)
Call Us To Learn More About Stopping Lawsuits With Bankruptcy Protection
All we do is bankruptcy and consumer rights in Chicagoland. We know how to help you avoid creditor harassment and other legal actions, including lawsuits. Call 312-574-3327 or use our online form to get a free consultation today.
We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.