One question that dallas bankruptcy law firms get asked quite often is whether a lawsuit must be completed in order to have the bankruptcy cover any potential liability from the lawsuit. On the contrary, a person can wait to file bankruptcy but this wouldn’t affect their ability to remove the lawsuit or judgment that would potentially ensue.
So if you’re being sued, call a bankruptcy attorney. If you have already been sued and were handed down a default or summary judgment in favor of the plaintiff and in a way that did not benefit you, you can still file bankruptcy. Filing bankruptcy also removes judgments which can then become liens on homes. If you went to sell your home, the title company would search in the real property records and find the judgment and the lien that has been filed in the ensuing time against your house if you own one. If you go to sell your home, the title company will take from the proceeds of your home and instead of giving it to you, he or she will be required to pay off the creditor listed as the owner of the secured interest in the house.
If you would like to stop a lawsuit, a good bankruptcy attorney can help. Don’t stress over the lawsuit. Regardless of what you do, the judgment or lawsuit would proceed, but depending on your needs, a bankruptcy can be highly beneficial.
Is stopping a lawsuit the same process as stopping a bank garnishment? Yes, the answer is that bankruptcy does give you opportunities to do certain things like relax and not be required to work two jobs.