Will filing for bankruptcy stop a lawsuit?

Yes, filing for bankruptcy will stop a lawsuit in Indiana. When you file for bankruptcy, the court will issue an order known as a stay. This stay stops any creditors from taking action to collect debt, including lawsuits. In addition, any debt that was owed before the filing of the bankruptcy petition will be eliminated in the bankruptcy proceedings, so the lawsuit will be moot. However, the stay does have some limitations. For example, if you have already been served with notice of a lawsuit, the stay may not be able to stop that action. Additionally, if a creditor is filing suit to collect on a debt that was incurred after filing for bankruptcy, it may still be able to proceed and collect the money. In that case, the court may still be able to put a stay in place that prevents the creditor from collecting on the debt until the bankruptcy case has been completed. It is important to remember that filing for bankruptcy does not absolve you of all of your debts. You will still be liable for any debt that is not discharged or restructured in the bankruptcy proceedings. Therefore, if you are sued for a debt that cannot be discharged, the stay will not be able to protect you from the lawsuit.

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Will filing for bankruptcy stop a lawsuit?

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