Filing for bankruptcy can be straightforward if you work with a bankruptcy attorney in Los Angeles. It can be challenging but it may be the only option. If you are thinking of filing, make sure that you hire an attorney.
Once you filed for it, you may think that you are free from any creditors’ lawsuits. This is possible even after you have filed for bankruptcy.
Bankruptcy Attorney in Los Angeles to Defend You
Your creditor can still sue you even after filing for bankruptcy. This is known as an adversary proceeding.
It is like a lawsuit with the plaintiff and defendant. When a creditor files adversary proceedings, the creditor is asking the court to declare your debt non-dischargeable. In other words, it cannot be wiped out.
How About the Automatic Stay?
Once you filed for bankruptcy, the automatic stay goes into effect. It prevents creditors from collecting money from you outside the court. Most lawsuits are not allowed unless they are filed with the court’s permission.
There are exemptions to this rule. For example, creditors can still sue you even if the automatic stay is in effect. Like, if you are facing child custody or a criminal case, you will still have to face this lawsuit and the court allows it.
Being sued after filing for bankruptcy happens because your creditor is not aware of your filing. Your creditor also does not understand how the automatic stay works.
That’s why it is ideal that you work with a bankruptcy attorney in filing for bankruptcy. In this way, if you face another case, your attorney can easily handle it.
If you are sued in another court, your lawyer will notify your creditor to stop collecting your debt. If the creditor does not stop, your attorney will notify the bankruptcy court.
In some cases, the lawyer from the other party will go to bankruptcy court first to obtain permission to file a court case. If the lawsuit is about seeking money judgment, the court is likely to reject the request.
If the lawsuit attempts to resolve liability that could lead to making the debt non-dischargeable, it could leave the suit as is, move it to another court or dismiss it.
When you are sued after filing for bankruptcy, it has something to do with the kids of debt that you have.
Lawsuits can be complex. But in some cases, they are straightforward. No matter what the nature of the lawsuit is, it is always best to work or hire an attorney.
Filing for bankruptcy does not necessarily require you to hire an attorney. You can do it on your own. But, if you wish the case to be successful, you need the guidance of a bankruptcy lawyer.
Indeed, hiring a lawyer may cost you money. However, it is all worth it considering the outcome of your case. Never face this case alone. You need someone, who is knowledgeable about this matter to work with you.
For a free consultation, call our bankruptcy attorney in Los Angeles at (818) 918-5215.