Will filing Chapter 7 stop a summary judgment from a credit card lawsuit?

Asked about 1 year ago - Los Angeles, CA

Thanks in advance.

Attorney answers (9)

  1. Carl H Starrett II

    Contributor Level 16

    14

    Lawyers agree

    Answered . The automatic stay will temporarily halt the lawsuit. If you receive a discharge of this debt, the creditor will be permanently barred from trying to collect on the amount owed. At that point, the creditor should dismiss the lawsuit.

    First, the firm is a debt relief agency according to the U.S. Bankruptcy Code. We help people file for bankruptcy.... more
  2. Brian Crozier Whitaker

    Contributor Level 17

    11

    Lawyers agree

    Answered . Not only will it stop a summary judgment from being rendered, but it will also stop collection on that judgment if the case is filed after it's rendered.

  3. Stuart Gregory Steingraber

    Contributor Level 17

    10

    Lawyers agree

    Answered . Absolutely. A Chapter 7 filing creates an automatic stay preventing any creditor listed in the Schedules and their agents, attorneys, etc, from doing anything to collect the debt. I am available for a free consultation if you want to discuss the particulars of your case.

  4. Diane L Gruber

    Pro

    Contributor Level 18

    9

    Lawyers agree

    Answered . Yes.

    Be sure to designate "best answer." If you live in Oregon, you may call me for more detailed advice, 503-650-9662.... more
  5. Sarkis Jacob Babachanian

    Contributor Level 12

    6

    Lawyers agree

    Answered . I agree with the other attorneys who say the BK will stop the MSJ and the suit, but want to add that sometimes creditors make fraud claims in addition to breach of contract claims. Fraud can be a reason for a lawsuit ("adversary proceeding" or "AP") in bankruptcy court, but that case would have to be timely brought in BK court, not in a state court or in the federal district court. Barring an AP, a BK will stop the MSJ and all collection efforts. You're welcome to contact me or any one of the fine Avvo lawyers who practice in the bankruptcy court for further assistance.

  6. Michael Salanick

    Pro

    Contributor Level 14

    5

    Lawyers agree

    Answered . Yes, the summary judgment will be stopped (or suspended) once the case if filed, and if you stand to receive a chapter 7 discharge of the debt, then the lawsuit (MSJ) may be dismissed once the underlying debt/liability is extinguished (via Discharge).

    Enlist qualified local bankruptcy law firm/lawyer to assist and you may save yourself headache/stress/money in the long-run.

    Best of luck!

    Michael Salanick, Esq.
    www.salanicklaw.com

    NOTE: we can be reached at www.salanicklaw.com (310) 590-4575. This answer is made available by the lawyer for... more
  7. Brad Francis Weil

    Contributor Level 11

    5

    Lawyers agree

    Answered . Yes if you file the bankruptcy before the summary judgment is issued and file a CM-180 notice of stay in the state court action.

  8. Justin Drayton Graham

    Contributor Level 13

    5

    Lawyers agree

    Answered . It will suspend a pendng motion for summary judgment, and discharge your personal liability for a summary judgment in most cases.

  9. Manuel Alzamora Juarez

    Pro

    Contributor Level 20

    4

    Lawyers agree

    Answered . Yes. The automatic stay will kick in immediately after filing. If you get a discharge, you never have to pay the underlying debt. Best of luck and remember do not attempt BK on your own. There are many landmines. Get a BK lawyer. Best of luck.

    This answer is provided by California Accident Attorney Manuel A. Juarez, Esq., 510-206-4492. Abogado de... more

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