I have a open civil suit with Bank of Omaha and my spouse has one with Bank of America and Walmart.
Have several other credit cards between us that are charged off.
Wife lost good nursing job in PA in 2017. We moved to Texas and she finally found employment.
Had to take early retirement in 2018. She only works 1 day a week now. 72 hours max a month.
So as you see most of our income is Social Security Disability and her regular Social Security.
I have been on Disability for a lot of years for Bi-polar 1 and anxiety disorder.
Credit card debt, including related civil lawsuit collection judgments, are generally dischargeable in Chapter 7 bankruptcy. If a civil suit is pending, a Suggestion of Bankruptcy may be filed in the pertinent court to abate the lawsuit.
This information is provided for educational purposes only, and is not to be relied upon as legal advice. You should consult with an attorney with full disclosure of all facts and opportunity to consider all or alternative options.
This is not really a tax law question. I am changing the category of your question to "Bankruptcy & Debt" so you will get more responses.
Ms. Willi is a tax attorney, CPA, and Ohio-Certified Specialist in Estate Planning, Trust & Probate Law, with offices in Westerville, Ohio. She serves client families and private business owners throughout Ohio. Ms. Willi responds to Avvo questions as a public service to help educate and provide general guidance to questioners, but her responses are not legal advice and do not create an attorney-client relationship. Her posts are provided for informational purposes only and are not a substitute for advice provided by an attorney or licensed tax professional. Her phone number is 614-890-0500 and her website is www.willilaw.com.
Yes, you can file bankruptcy while there are open civil suits against you for credit cards. It's a fairly common response to the filing of a credit card lawsuit, and generally results in the lawsuits being dismissed and the debts discharged, assuming you qualify.
We are a debt relief agency and we help people file for relief under the bankruptcy laws of the United States of America.
I would add that if you file bankruptcy, list ALL credit cards on your bankruptcy, "charged off" or not. Just because a credit card lender has elected at this point not to pursue debt collection procedures against you, that does not mean that they can't change their mind!
Years licensed, work experience, educationLegal community recognition
Peer endorsements, associations, awardsLegal thought leadership
Publications, speaking engagementsDiscipline