Many people wonder how they can avoid a bankruptcy lawsuit by creditors when they own a business and are dabbling with the prospect of bankruptcy.
Going through a lawsuit might be one of the most difficult things that you have ever experienced, which is why many people attempt to avoid this trying process. Though nobody likes the process of filing for bankruptcy, it might offer you the protection you deserve during this challenging time.
In a Bankruptcy Lawsuit, You Can Avoid Annoyance From Debt Collectors
Depending on the circumstances of your case, bankruptcy is a good way to eliminate your debts so that you can start fresh when it pertains to your business. It is also a great way to get started on paying creditors over time if this is the path that you need to take.
This can be done through either Chapter 7 or Chapter 13 bankruptcy. You can stop debt collectors from calling after you all the time, even if they have brought a lawsuit against you. This means that you will not have to move forward with the lawsuit process, which can be stressful and expensive when it is not necessary.
How the Automatic Stay works with a Bankruptcy Lawsuit
When you file for business bankruptcy, something known as the ‘automatic stay’ will immediately be put in place. No matter if you choose Chapter 7 or 13 bankruptcy, the court will issue the automatic stay so that your creditors will be prevented from pursuing you for your debt. This means that, for some time, you will not receive calls and letters.
This also means big things for you when it comes to lawsuits. Once you move forward and file your bankruptcy, the creditors who are on your case will not be able to file a lawsuit against you.
This means that, until the bankruptcy court gives permission, no action can legally be taken against you. By working with an attorney, you will not go through the legal process until the bankruptcy is figured out and you can move forward completely.
Going Through a Bankruptcy Discharge
When your bankruptcy case is finished, your case will go through what is known as ‘bankruptcy discharge.’ The discharge means that you will no longer have any debt as a result of your case.
So, if there is a pending lawsuit brought on by a creditor, your creditors will have no reason to move forward with it because you no longer owe any of these debts. This should lessen the stress that you are feeling and you will be able to meet the parameters of your bankruptcy instead of working through the turmoil of an unexpected lawsuit.
How it Helps to Have a Bankruptcy Attorney
Nobody should have to stand alone after they have been harassed by creditors and are unsure of where they can turn. Moving forward with the Texas bankruptcy process might be the best decision that you can make as you navigate this new process.
Attorney Jermaine Watson will protect you, as we have experience handling these cases and are fully committed to helping you obtain the best results. Don’t hesitate to contact our attorneys in Texas immediately to get started on this process at 817-877-2861.