One of the most common situations among bankruptcy clients is credit card lawsuits. Most clients that file for bankruptcy have some credit card debt, but some clients have aggressive debt collectors that are suing the client for the credit card balance owed. What’s worse, the lawsuit often seeks collection costs, including attorney fees. What this means is that if you defend the lawsuit and lose, you will have to pay not only the credit card balance owed but also your creditor’s attorney fees.
The Bankruptcy Solution
Rather than engaging in a futile defense that will only increase the other sides attorneys fees, bankruptcy lawyers can provide a meaningful debt relief solution: file for bankruptcy. By contacting Michael Benavides and filing bankruptcy you can stop the credit card lawsuit while the underlying debt gets discharged. A bankruptcy lawyer can tell you the specifics, but a credit card lawsuit can be stopped by filing for bankruptcy.
How it works
- Call a bankruptcy lawyer for a free consultation. Bring the summons and complaint with you to the bankruptcy lawyer’s office. The lawyer will review the lawsuit and tell you whether filing for bankruptcy is in your best interest. If bankruptcy is a viable option the attorney will have you sign a representation agreement and give you some paperwork.
- File for bankruptcy. Once you have completed the paperwork the bankruptcy lawyer will electronically file your bankruptcy petition with the appropriate bankruptcy court. Once the petition has been filed the proceedings related to your lawsuit must stop pursuant to the automatic stay in bankruptcy. In essence, once you file for bankruptcy all debt collection efforts must stop, including the credit card lawsuit.
- Put the creditor on notice. The bankruptcy lawyer will probably send opposing counsel a letter stating that you have filed for bankruptcy and are protected by the automatic stay. This letter will put the creditor on notice that they must stop the lawsuit and resort to the bankruptcy process.
- Discharge the debt. If the debt underlying the credit card lawsuit is unsecured you probably have a decent chance of getting it discharged in chapter 7 bankruptcy. Once the debt is discharged the creditor filing the lawsuit will not be able to collect on the debt after the bankruptcy.
Stop Your Credit Card Lawsuit
Our bankruptcy lawyer can stop your credit card lawsuit. Call our office at (707) 200-6688 for a free phone consultation.