WHAT CAN BE DONE ABOUT LAWSUITS AND JUDGMENTS?

The filing of bankruptcy prevents any lawsuits from being filed or judgments taken against you. If you file bankruptcy and a lawsuit against you is pending, it can go no further. If a judgment has been taken, its enforcement can go no further. If a creditor has a judgment and is garnishing your wages, the garnishment can be stopped.

If there are potential lawsuits against you, often the Bankruptcy Court offers a forum where the dispute can be rapidly settled - thus avoiding the time and expense of litigating the matter in State Court.

If a judgment has already been taken against you, when filing for bankruptcy relief you may either be relieved of the obligation to pay the judgment debt in a straight bankruptcy, or you may be able to arrange payment and satisfaction of the judgment over a period not to exceed 5 years without interest in a Chapter 13 reorganization.

If the judgment has placed a lien on your home, that lien may be able to be removed so that they will get paid with no interest or possibly removed without you having to pay the debt. If lawsuits or judgments are either threatened or a present reality, the protections afforded under the Bankruptcy laws may well solve your problems.