What happens to lawsuits and attachments that have already been filed against me?

lawsuits attachments consumer bankruptcy

What happens to lawsuits and attachments that have already been filed against me?

Once the petition is filed, there is an “automatic stay” of most lawsuits and attachments against you. A “stay” means that all proceedings in the lawsuit are temporarily halted. A creditor needs to obtain “relief from the stay” in order to continue the lawsuit. Either party may also “remove” the lawsuit to the bankruptcy court, which might then either hear and decide the suit or “remand” it back to the original court.

Criminal actions, lawsuits to establish paternity or other domestic relations actions (custody, visitation, domestic violence), litigation to collect child support or alimony, repaying a loan from certain types of pensions, and IRS audits are not stopped. Regarding evictions, landlords are free to complete evictions if the landlord already has a judgment of possession or where the eviction is based on endangerment or use of illegal substances on the leased premises. Moreover, the automatic stay doesn’t stop or postpone actions to restrict driver’s licenses and revoke professional licenses.

(Reviewed 11.14.08)

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