CALL NOW!
FREE PHONE/VIRTUAL CONSULTATION

Can Bankruptcy Help After a Creditor Has Filed a Lawsuit?

Filing Bankruptcy After A Creditor Lawsuit In St Petersburg, Pasco, And Tampa Florida.Bankruptcy Timing

Timing in bankruptcy is very important. A bankruptcy attorney can help you determine the best time to file, but even if you don’t file at the ideal time, there are still ways that bankruptcy can help you. This is true even if creditors or debt collectors have taken drastic action against you.

Ideally, you’ll begin researching your options and choose to file for bankruptcy before a lender files a lawsuit against you, but the truth is many people do not act until they receive the notification of the lawsuit. In some cases, a borrower’s wages have already been garnished before they decide to file.

The truth is filing for bankruptcy has benefits no matter how long you wait to file, but it’s best not to wait until you are financially overwhelmed before moving forward.

What should you know about filing for bankruptcy after a creditor files a lawsuit against you?

Difference between Threatening to File and Filing a Lawsuit

Many creditors send you a notification stating they intend to file a lawsuit against you and in many cases, this notification might seem misleading. You might assume legal action has begun and jump to conclusions about filing for bankruptcy.

Depending on your situation, if a single creditor simply threatens a lawsuit, it’s probably best not to move forward with bankruptcy just yet. There might be a way to work out a payment plan with the creditor or settle the debt for less than the total amount owed.

However, if legal action has officially begun and/or your financial situation is such that there is no way you could afford to pay anything on the debt, it might be best to consider bankruptcy.

Eliminating a Debt in Bankruptcy

One of the primary benefits of bankruptcy is its ability to eliminate some or all of your debt. This is the case whether a lawsuit has been filed or not. Some debts are non-dischargeable, but assuming the debt in question is eligible for discharge, you can eliminate it even if the creditor has been granted a judgment and is currently collecting on the debt. As a matter of fact, those collection efforts must immediately stop once you file.

For more information about dischargeable vs. non-dischargeable debts, check out this information.

Debts vs. Liens

Keep in mind that some debts are also liens, which complicates your situation a bit more. Liens transfer ownership and rights of personal property to the creditor. Liens are granted after a creditor wins a judgment. Despite there being a lien, an experienced bankruptcy attorney can fight it and potentially get some of your property returned to you. Every case is different and it’s important to share as much information as possible with your bankruptcy attorney so he or she can advise you on how to proceed.

The worst thing you can do if a creditor is threatening legal action or has taken legal action against you is to ignore the situation. The less you do the more power the creditor gains, regardless of where you are in the process.

If you are facing legal action related to your debts or you have questions about whether or not bankruptcy would be beneficial in your situation, we can help. Contact the Law Office of Robert M. Geller at (813) 254-5696 to schedule a free bankruptcy consultation to discuss your case.

Archive

Video Testimonials

Tampa Bankruptcy Law Blog

Are Medical Issues Forcing You Into Bankruptcy?

Many Americans wind up in debt because of medical bills. One of the most common reasons for filing bankruptcy in...
Read More

Law Offices of Robert M. Geller, P.A. Congratulates Danielle Austin For Receiving the Patriot Award from the United States Department of Defense

Award Recognizes Support of Guard and Reserve Members Who Work for the Organization Tampa, Florida, June 29, 2021 – The...
Read More

Is Your 401k or Other Retirement Savings at Risk in Bankruptcy’s Liquidation of Assets?

If you’ve spent years saving for retirement, putting that money at risk when you file for bankruptcy is likely one...
Read More

Tips to Help You Protect Your Assets When You File for Bankruptcy

One of the most intimidating aspects of filing for bankruptcy is protecting your assets. Worrying about whether bankruptcy puts their...
Read More

How Does Bankruptcy Affect Vehicle Ownership? What Assets Can You Keep through the Bankruptcy Process and Does It Affect Your Car?

Many people struggling financially avoid filing for bankruptcy because of concerns about losing important assets like their vehicles. The good...
Read More

Is There a Legal Way to Hide Assets When You File for Bankruptcy?

Filing for bankruptcy can be an overwhelming experience. The relief you receive when you file helps you feel better about...
Read More

Do Bankruptcy Trustees Take Your Savings? What is Considered an Asset in Bankruptcy and How Does It Affect the Money You’ve Saved?

Bankruptcy trustees gain access to a variety of your assets when you file. But what is considered an asset in...
Read More

Can Filing for Bankruptcy Help You Protect Your House?

fiHow filing for bankruptcy affects your home is one of the greatest concerns people have when they consult with bankruptcy...
Read More

Should I Refinance a Student Loan I Can’t Discharge in Bankruptcy?

Student loan debt is overwhelming many people. Could refinancing be the answer to help you avoid bankruptcy if your student...
Read More

Can Student Loan Consolidation Help You Avoid Bankruptcy?

One of the most common questions people have when they consider bankruptcy is “can student debt be discharged in bankruptcy?”...
Read More

Bankruptcy

For The Next 5 Days GET A FREE BOOK About Bankruptcy

Learn More

Infographics

We are A Debt Relief Agency.
We help people file for bankruptcy under the Bankruptcy Code

Pay Online Bankruptcy Courses Newsletter Subscription

NACBA Logo avvo1 avvo2 avvo3 LEA BBB Logo RG Seal

Call For A Free Initial Consultation

813.254.5696

Tampa Office

Law Offices of Robert M. Geller, P.A.
807 West Azeele Street
Tampa, FL 33606
T: (813) 254-5696
T: (800) 853-7549
F: (813) 253-3405

Map And Directions

St. Petersburg Office

Law Offices of Robert M. Geller, P.A.
125 5th Street South
(Wells Fargo Financial Center)
2nd Floor, Suite G
St. Petersburg, FL 33701
T: (727) 532-3939

Map And Directions

Pasco Office

23526 State Road 54
Lutz, FL 33559
T: (813) 336-2320

Map And Directions