Can I Be Sued for Debt After I File for Bankruptcy?

Many consumers who file for bankruptcy in the Oak Park area are dealing with contact from creditors and debt collectors, and many are concerned that they may soon face a lawsuit from a creditor or debt collector to whom they owe money. At the same time, many debtors have already received notice of a civil lawsuit against them, and they often have questions about how a bankruptcy filing will impact such a lawsuit. Indeed, many individuals who file for Chapter 7 or Chapter 13 bankruptcy want to know: can I be sued for debt after I file for bankruptcy? In short, the answer is no, and our Oak Park bankruptcy attorneys can explain your rights to you in more detail.

How the Automatic Stay Prevents You From Being Sued

One of the most important tools in a bankruptcy case is the automatic stay. Under the Bankruptcy Code, the automatic stay applies to an individual bankruptcy case as soon as the bankruptcy petition is filed. This is true whether you are applying for Chapter 7 bankruptcy or Chapter 13 bankruptcy. What is the automatic stay, and how does it prevent you from being sued? The automatic stay is an injunction, and as soon as you have filed your bankruptcy petition, it prevents creditors and debt collectors from taking any action against you. There are exceptions, but only when a creditor or debt collector has petitioned the bankruptcy court to lift the automatic stay in a particular case (and this does not happen commonly). If a creditor or debt collector does take collection action against you, they will be in violation of the automatic stay.

Creditors and Debt Collectors Cannot Sue You After You File for Bankruptcy

The automatic stay prevents you from being sued. So, if you are anticipating that a creditor or debt collector might file a civil claim against you after they have threatened to do so over the phone or email, for example, the automatic stay will prevent this from happening. If a creditor or debt collector filed a civil lawsuit against you after your bankruptcy petition was filed, they would have violated the law.

Existing Lawsuits Against You Cannot Move Forward

Similarly, a creditor or debt collector cannot move forward in a lawsuit against you that is already pending. To be sure, the automatic stay also prevents any ongoing debt collection action against you from proceeding.

Contact an Oak Park Bankruptcy Lawyer

Bankruptcy law is extremely complicated, and it is important to have an experienced Oak Park bankruptcy attorney on your side, regardless of the relative complexity of your bankruptcy case. A lawyer at our firm can evaluate your financial circumstances today, and we can provide you with more information concerning your eligibility for bankruptcy. Whether you are eligible and planning to file for Chapter 7 or Chapter 13 bankruptcy, our firm is here to assist you. Contact the Emerson Law Firm today to find out more about the services we provide to our clients in Oak Park and the greater Chicago area.



See Related Blog Posts:

Getting Relief: Answers to Your Top Five Bankruptcy Concerns

Can Chapter 13 Bankruptcy Save My Home?

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