What Happens in Bankruptcy if I Have a Potential Lawsuit for Money?

If I Have a Potential Lawsuit for Money, What Happens in Bankruptcy?

When you file for bankruptcy, an "automatic stay" is put into place. This means that your creditors are prohibited from trying to collect money from you. The automatic stay also applies to lawsuits. If you have a potential lawsuit for money, the automatic stay will stop the lawsuit from going forward.

However, the automatic stay is not permanent. If your creditor or the court believes that the lawsuit is "likely to succeed," they can ask the court to lift the stay. This means that the lawsuit can go forward, and you may have to pay back any money that you win in the lawsuit.

If you are facing bankruptcy and have a potential lawsuit for money, it's important to talk to an experienced bankruptcy attorney.

The Law Office of Omar Zambrano has helped thousands of people and companies in the past to pay off their debts and start over.

With us you will start a new life!

Sign up for a free consultation today! By calling 626-338-5505 or by visiting us at 12738 Ramona Blvd Baldwin Park CA 91706.