If you are thinking about filing for bankruptcy, you may be wondering if other legal matters can affect the process. A pending lawsuit, for example, can be a factor when you file, but bankruptcy might also put a stop to some legal actions. You should read on to learn more, and then you can talk to a New City bankruptcy attorney to see if filing for bankruptcy is still a viable option for you.

Will a Pending Lawsuit Stop Me From Filing For Bankruptcy?

If you have a pending lawsuit against you, that is unlikely to stop your bankruptcy process or have any effect on it. A lawsuit can affect your bankruptcy filing if you are the plaintiff though. If you are attempting to recover money from someone else, this is a potential asset. All assets have to be accounted for during the bankruptcy process, so this may complicate matters.

Can Bankruptcy Stop a Pending Lawsuit?

Filing for bankruptcy can also put a stop to a certain type of pending lawsuit. If someone is trying to collect money from you, an injunction could put a stop to that. When you file for bankruptcy, an automatic stay is issued against your creditors. They cannot take any action against you to collect debts, and that includes lawsuits.

However, sometimes the plaintiff of a pending lawsuit can successfully petition the court to continue pursuing legal action. So some types of finance-related lawsuits may be stopped by an automatic stay, but you should not rely on it completely.

What Kinds of Lawsuits Won’t Stop Progressing Due to Bankruptcy?

The automatic stay is not going to affect lawsuits that are not related to your finances though. If you are facing criminal charges, that case is probably going to continue to move forward. However, even this kind of case can get complicated if the charges involve money, fines, or fraud.

Other types of pending lawsuits can also proceed against you despite your bankruptcy filing, even some of a financial nature. If you are being sued over child support, divorce, or an eviction, an automatic stay is not going to affect those legal actions.

Do I Need a Lawyer?

We do recommend consulting a lawyer if you want to file for bankruptcy. It’s a complex process with a lot of paperwork and important deadlines to remember. An experienced attorney can guide you through this process after a careful review of your financial situation. If filing for Chapter 7 or Chapter 13 bankruptcy is the right move for you, we’ll help you do it.

Schedule Your Consultation Today

So if you are considering filing for bankruptcy, contact the Lauterbach Law Firm. We can take a closer look at your situation and help you figure out if bankruptcy is the right option for you and if it can stop any legal actions currently being taken against you. If you are ready to get a fresh financial start, we are ready to assist you.