One little known fact about bankruptcy is that it can stop an ongoing lawsuit. In some cases, you may even be able to discharge judgment debts.
When you file for Chapter 7 or Chapter 13 bankruptcy, an automatic stay goes into effect which immediately halts most forms of creditor collection efforts, which includes lawsuits and the collection of judgment debts. The creditor may request that the bankruptcy court lift the automatic stay and some judgment debts are not dischargeable.
Fortunately, most types of judgment debts may be discharged with a Chapter 7 bankruptcy if you are eligible for Chapter 7 relief. With a Chapter 13 bankruptcy, you repay debts over a three- to five-year debt repayment plan, but you only pay what the court determines you are able to pay. At the end of your Chapter 13 plan, the court may discharge any remaining unsecured debts you are unable to pay. In addition, you may be able to stop a wage garnishment resulting from a judgment debt.
I am bankruptcy lawsuit attorney Charles Covey. I have been helping clients find solutions to difficult debt challenges for more than 30 years. I have helped thousands of clients obtain debt relief with Chapter 7 bankruptcy and Chapter 13 bankruptcy. To learn more, contact my law office in Peoria, Illinois. I work with clients throughout Illinois inlcuding Peoria, Pekin, Canton, and Galesburg.
Contact a Pekin Bankruptcy Lawyer
Call 309-674-8125 to schedule your free consultation. You may also contact me by e-mail.
We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.