Bankruptcy Lawsuits Attorney in Killeen, TX

It’s not at all uncommon for good people in Killeen to have depended upon their credit cards to help them through periods of financial hardship only to find themselves incapable of repaying that debt when creditors expect a return on their investment. Though the problem may have been put off for a while, credit card companies will eventually file a lawsuit to recover their money. Actually discovering that your credit card company is suing you can be incredibly intimidating; however, it’s important to realize that there are legal protections available to help you.

Bankruptcy Protections After a Lawsuit

Automatic Stay

Lawsuits cannot be filed or continued against anyone who is working through the process of bankruptcy. Under the Bankruptcy Code, an action that is known as an “automatic stay” will be automatically imposed whenever a person files for bankruptcy. The automatic stay immediately prevents any new or existing lawsuit from being pursued against you. In fact, the automatic stay has so much legal power that it even prevents the IRS from pursuing any of its collection actions.

Once we file for bankruptcy on behalf of our clients in Killeen, we will immediately issue a notice in any of their pending lawsuits that an automatic stay is now in effect. The court will stop the lawsuit the moment they are aware of the stay. Additionally, if you walk away from Bankruptcy Court with an order that your debts have been discharged, our Killeen legal team will file motions on your behalf to have any relevant lawsuits against you dismissed on the grounds that there is no longer any debt to recover.

Judgments

Debt can be discharged even after a judgment has been handed down in a lawsuit in the same way that debt can be discharged at any other point during or before a lawsuit. If a judgment has been handed down in favor of your creditors, their attorneys will have probably filed what is called an “Abstract of Judgment” in your county deed records. The Abstract of Judgment is essentially a judgment lien on all of the real estate you own in the county in which it is filed. One of the first things we do for our clients in Killeen is to check the county deed records to discover whether a judgment lien had been filed. If one exists, our Killeen team will file a motion on behalf of our client to avoid that Abstract of Judgment. This will ensure that the Abstract of Judgment will be lifted so that our clients can refinance or sell their homes with greater ease.

Bankruptcy for the Plaintiff in a Lawsuit

In some instances, our clients in Killeen are acting as plaintiffs in lawsuits when they file for bankruptcy. Since the lawsuit may eventually produce a financial award, the court must be made aware of this asset so that it can be protected by the bankruptcy case. Even if the lawsuit is filed after you file your bankruptcy case, you should understand that it will be important that you disclose any pending or possible lawsuit in your bankruptcy schedules.

The failure to disclose any lawsuit of this nature in your paperwork will constitute a false representation—remember, these documents are signed under penalty of perjury. In addition, plaintiffs who fail to disclose their lawsuits will no longer have the ability to pursue that lawsuit any further. In any case, you should let your attorney know about any lawsuits you are involved in; our Killeen team may be able to help you protect those assets.

Consult with Our Bankruptcy Team in Killeen

If you are involved in a lawsuit and are considering bankruptcy, you should give us a call. This process can be incredibly complex and our team can help you understand your situation, consider your options, and then choose the best way forward. To learn more about what a Killeen bankruptcy attorney may be able to do for you, call Erin B. Shank, PC, at (254) 296-1161 today.