New Jersey Bankruptcy Eliminate Lawsuits

After a default, credit card companies will pursue collection efforts and will eventually file a complaint against you in the New Jersey county in which you reside. If you have made the decision to file for a chapter 7 bankruptcy in New Jersey, you may not need to file an answer to the complaint. You should consider filing an answer only if you have a defense or if you want to buy more time to evaluate your options. There are, however, certain category of debts that cannot be discharged in a bankruptcy and it may be important to file an answer. For example, if the lawsuit is alleging fraud or is alleging intentional tortious act or injury, it is not dischargeable in bankruptcy. If you have a defense, we strongly suggest that you file an answer.

If you fail to answer the lawsuit in NJ or if you lose the suit, there will be a judgment against you. The creditor will attempt to collect on that judgment by submitting an application to attach to your bank account, garnish your wages, etc.

The filing of a New Jersey Bankruptcy will provide you the protection of the automatic stay. All collection efforts by the creditors will cease. If you are granted a discharge as to that debt, the judgment will be wiped out. Similarly, other judgments for unsecured debt can be wiped out.

If you are being sued for a secured debt (e.g. car loan), the creditor will make an application with the bankruptcy court to grant a relief from the automatic stay. This relief will allow the creditor to cease the collateral.

Since the filing of a chapter 7 bankruptcy stops a lawsuit and wipes out a judgment, it is a very powerful tool. Many individuals are motivated to file a chapter 7 bankruptcy to rid themselves of a lawsuit or judgment. If you are being sued, contact us for a free evaluation to determine if a chapter 7 filing is the best option for you.

New Jersey Bankruptcy Attorney
372 Summit Avenue
Jersey City, NJ 07306
Phone: 1 (888) 489-1533
Fax: (201) 798-8001