If You Are Being Sued

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, 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 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 chapter 7 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 (ex. 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.

 

Law Offices of Jay Bhatt

618 Newark Avenue, Suite 210

Jersey City, NJ 07306

Phone: (201) 798-8000

Fax: (201) 798-8001

 

Chapter 7 Bankruptcy Info

Consultation Checklist

Click Below for a complete checklist of items that are necessary to proceed with a chapter 7 bankruptcy. We suggest you bring these to our office during the first consultation or supply them by fax or email if the consultation is done over the phone or via the internet.

Client Testimonials

Thank you for helping my wife and I. You have been an angel in our lives during these tough times. You have given us a fresh start. God bless you.

- Edward S.-

I'm grateful for having you take care of my case. The credit card bills, medical bills and lawsuits were a constant stress in my life. I am so glad that I took the next step. I can finally breathe again.

- Rafael R.-

When I became unemployed, I thought I had no way out. My credit card debts would continue to increase and I was overwhelmed with phone calls from collectors. Fortunately, I found Jay Bhatt who advised me to file for chapter 7. It was the best decision I ever made. He is very knowledgeable, experienced and most importantly he works fast. For a reasonable fee, I got out of my debts in no time. I have gone back to work full time and my previous debts have been discharged. Thanks Jay for your help.

- Ana A.-