There are those out there who will avoid filing bankruptcy at any cost. Unfortunately, this can result in a person facing auto repossession, wage garnishment, and even lawsuits; but, any of the top Sacramento bankruptcy attorneys would explain that this simply isn’t wise. In fact, the resultant lawsuits can end with you losing everything you have; and you’re likely left wondering what you do when being sued by creditors. Fortunately, a skilled bankruptcy attorney can help in these situations.
Bankruptcy Stops Lawsuits in their Tracks
The most important way that a bankruptcy attorney can help fight back against lawsuits is by stopping them in their tracks. Whether you file for Chapter 13 or Chapter 7 bankruptcy discharge, an automatic stay is granted. This means that no creditors can continue with any collection attempts, and this includes lawsuits already filed.
It should always be recognized, though, that these creditors can file a motion to be exempt from this stay. During this process, they’ll need to show that there’s a legitimate reason that they should be exempt, and if you have one of Sacramento’s top bankruptcy attorneys at your side, you’ll have a much better chance at fighting this motion.
After a Judgment has been reached
Whenever a lawsuit against a debtor has been completed, they often think one of two things. First off, many believe that they’re simply out of luck and will have to pay the judgment. Secondly, there are those who think that filing bankruptcy will simply make these judgments disappear. In reality, both of these groups could be wrong.
It must first be decided whether a judgment against a debtor is dischargeable or not. Lawsuits related to student loans, HOA fees, child support, and money owed to the government usually cannot be discharged. Additionally, if creditors can prove that a judgment was pursuant to malicious acts or fraudulent behavior, such as running up a credit card bill with the intent to file bankruptcy, the courts may choose to not discharge these debts.
Sadly, some creditors can still successfully place a lien on a person’s property. The top Sacramento bankruptcy attorneys, though, can often use lien avoidance to get rid of this lien. For this to work, a person must file quickly and follow all bankruptcy laws, so having legal help is a definite advantage.
Speak with a bankruptcy attorney today and find out how getting a fresh start is as easy as pressing the restart button! Call now 916-446-1791