Will filing for bankruptcy stop a lawsuit?

Filing for bankruptcy is a way of getting relief from your debts. In Colorado, when someone files for bankruptcy, an automatic stay goes into effect. This means that creditors are prohibited from taking legal action against the filer in an effort to collect a debt. This means that if a lawsuit is already in progress before the bankruptcy filing, it may be put on hold or dismissed, depending on the type of bankruptcy. However, it is important to note that the automatic stay does not necessarily apply to all types of lawsuits. For instance, filing for bankruptcy does not typically prevent lawsuits from creditors seeking child support or alimony. Additionally, the automatic stay does not typically apply to criminal lawsuits. It is also important to note that a bankruptcy filing can stay in effect for a maximum of a year. If a lawsuit is still ongoing at the end of that year, the lawsuit typically proceeds. Therefore, filing for bankruptcy does not guarantee that a lawsuit will be stopped or dismissed. If you are considering filing for bankruptcy in Colorado and have questions about what legal action may be stopped or dismissed due to the filing, it is best to speak to an experienced bankruptcy attorney. They can guide you through the process and help you understand your rights and options.

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Will filing for bankruptcy stop a lawsuit?

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