Both Chapter 7 and Chapter 13 bankruptcy can be effective tools for dissolving an active lawsuit or even a prior judgment.
Perhaps the moneylender or debt-buyer is threatening to take action against you, such as filing a lawsuit or sending a foreclosure notice. One call from your bankruptcy attorney will stop that action.
Bankruptcy’s automatic stay almost always applies if a lawsuit has been filed. About the only exception is an eviction lawsuit brought by a landlord against a tenant, and even then the automatic stay may still apply. “Collection activity” includes a judicial or non-judicial foreclosure, repossession, or lawsuit. The attorneys at Henley and Henley, P.C. will file paperwork with the court which forces the plaintiff to suspend or even cancel its lawsuit.
Judgment Lien
If a judgment has been entered against you, bankruptcy may still be the solution. Often a moneylender or debt-buyer will seek to place a lien on your house. A bankruptcy court may grant a motion to avoid the lien, so your home will be free from that lien.
Call today for your free consultation, and find out how bankruptcy may be the answer you need to hear.