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Levitt & Slafkes, P.C. - Essex County Bankruptcy Attorneys

Get The Fresh Start You Deserve

Levitt & Slafkes, P.C. - Essex County Bankruptcy Attorneys
GET THE FRESH START YOU DESERVE

Bankruptcy &
Debt Relief For
Individuals and
Businesses

Chapters 7, 11
and 13

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Foreclosure
Defense &
Mortgage
Litigation

Saving Homes
Fighting Banks

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Loan
Modifications

Preventing
Foreclosure

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Commercial and 
Bankruptcy
Litigation

State Federal &
Bankruptcy Court

FIND OUT MORE

Bankruptcy & Debt Relief For
Individuals and Businesses

Chapters 7, 11 and 13

Find Out
More

Foreclosure Defense &
Mortgage Litigation

Saving Homes Fighting Banks

Find Out
More

Loan Modifications

Preventing Foreclosure

Find Out
More

Commercial and Bankruptcy
Litigation

State Federal &
Bankruptcy Court

Find Out
More

Can Bankruptcy Help With a Lawsuit?

| Nov 14, 2014 | Bankruptcy Basics, Creditor Lawsuits |

Many people ask us if filing bankruptcy can help them with a lawsuit. In most cases the answer is yes!

One of the advantages of filing for bankruptcy protection is the automatic stay. The stay goes into effect immediately upon the filing of your petition. It stops creditors from taking any further collection activity against you. If a creditor ignores and willfully violates the stay, you may be entitled to recover actual damages and your attorney fees. In some cases of extreme violations, the court may award punitive damages. Also, after you receive your discharge, you will no longer owe the money that the creditor is suing you to recover.

If you have a lawsuit pending against you when you file a bankruptcy, we can file a Suggestion of Bankruptcy in the case to ensure that the civil court and the parties to the litigation receive notice of your filing. This is beneficial because it means the lawsuit against you comes to a stop. In some cases, you can discharge or eliminate the debt at issue in the lawsuit.

In rare instances, such as where fraud or embezzlement has been committed by the debtor, a creditor may attempt to pursue their claims against you in your bankruptcy case. In other words, the creditor seeks to obtain an order declaring the debt owed to them is non-dischargeable. However, most creditors do not spend the time or the money to pursue this type of claim, especially if it is unlikely they will be able to fully recoup what is owed from you.

If you have collection lawsuits pending against you and you want to learn how filing a personal bankruptcy would impact them, contact us to schedule an initial consultation.

We are bankruptcy lawyers who know how to make a difference in your financial situation. We have experience you can rely on and we care about your results. Contact our New Jersey law firm online by filling out the form or by calling 973-323-2953 to schedule a free initial consultation with an attorney at Levitt & Slafkes, P.C..

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