I received a notice that a creditor is suing me. Can I still file bankruptcy?

If you’ve received a notice that a creditor is suing you, the good news is that you can still file for bankruptcy. In fact, bankruptcy can provide immediate relief by stopping most legal actions against you. Here’s what you need to know:

The Automatic Stay: Your Shield Against Lawsuits

When you file for bankruptcy, an automatic stay goes into effect. This powerful legal tool halts almost all collection actions, including lawsuits, wage garnishments, and foreclosures. Once your bankruptcy petition is filed, creditors must pause their legal actions, giving you the opportunity to address your debts without the pressure of ongoing litigation. However, there are exceptions, so it’s critical to consult with an expert bankruptcy attorney to understand how the automatic stay applies to your specific case.

How To Protect Your Assets During Bankruptcy

Filing for bankruptcy doesn’t necessarily mean losing your home or car. Chapter 7 bankruptcy allows you to use exemptions to protect certain assets within state and federal limits. Alternatively, Chapter 13 bankruptcy provides a repayment plan that helps you catch up on missed payments and retain essential property. An experienced bankruptcy attorney can guide you through the process to maximize asset protection.

Choosing The Right Bankruptcy Chapter

Your choice of bankruptcy chapter depends on your financial situation, including your income and the types of debt you owe. Chapter 7 is ideal for quickly discharging unsecured debts, like credit cards or medical bills, if you qualify based on income. Chapter 13 bankruptcy is better suited for individuals with a steady income who want to create a repayment plan to keep secured assets. An attorney can evaluate your circumstances and recommend the best option for you.

What Happens To Your Debts?

Bankruptcy eliminates many types of unsecured debts, such as credit card balances, personal loans, and medical bills. However, certain obligations—like student loans, child support, alimony, and some taxes—are generally non-dischargeable. For secured debts tied to assets, you may need to reaffirm or repay them to retain the collateral. Understanding what debts can and cannot be discharged is essential, and your attorney will ensure you are fully informed.

Why Work With A Bankruptcy Attorney?

Navigating bankruptcy laws can be overwhelming, especially if you’re facing a lawsuit. A skilled bankruptcy attorney will handle the legal complexities, ensure accurate filing of paperwork, and represent you in court hearings. They can also communicate with creditors on your behalf, protect your assets using applicable exemptions, and guide you toward the best financial outcome. With the right legal support, you can avoid costly mistakes and take the first step toward rebuilding your financial future.

Take Action Today

If a creditor is suing you, don’t wait. Filing for bankruptcy can provide the protection and relief you need to address your debts and stop legal actions. Contact us today to discuss your case and explore your options with an experienced bankruptcy attorney.