Will filing for bankruptcy stop a lawsuit?

Filing for bankruptcy can help to stop a lawsuit in Delaware. Basically, once you file for bankruptcy, an automatic stay goes into effect. This stay prevents creditors from taking any legal action against you, including filing a lawsuit or continuing an existing one. In Delaware, the stay applies as soon as the bankruptcy papers are filed, whether it is a Chapter 7, Chapter 11, or Chapter 13. However, the stay does not stop legal action in all cases. For example, it does not typically stop criminal proceedings, child support collection suits, or alimony collection suits. It also typically does not stop proceedings related to the foreclosure of a mortgage or repossession of property. In addition, creditors can petition the court to lift the stay in certain circumstances. For example, if the creditor can show that the debt is not dischargeable in bankruptcy, the court may grant the creditor permission to move forward with the lawsuit. In summary, filing for bankruptcy does not automatically stop a lawsuit in Delaware. However, it does create an automatic stay which will temporarily stop creditors from taking legal action against you. This stay may be lifted in certain circumstances, so it is important to speak with a qualified bankruptcy attorney if you are considering filing for bankruptcy.

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Will filing for bankruptcy stop a lawsuit?

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