Will filing for bankruptcy stop a lawsuit?

Filing for bankruptcy can often stop a lawsuit. However, it depends on the type of bankruptcy that is filed. In Texas, there are a few different types of bankruptcy. Depending on the type that is filed, it can stop a lawsuit. For example, if someone files a Chapter 7 bankruptcy, it will stop most, if not all, lawsuits. This is because creditors are not allowed to pursue legal action against you if your debts are discharged in the bankruptcy. If someone files a Chapter 13 bankruptcy, it will not stop an ongoing lawsuit, but it can stop a creditor from continuing with the lawsuit. This is because the bankruptcy will stop creditors from pursuing the debt. In addition, a Chapter 13 bankruptcy will allow the person to repay their debt over a set period of time according to a plan. If someone files a Chapter 11 bankruptcy, it will not stop a lawsuit from continuing, but it will stop creditors from seeking repayment, since all debts are addressed in the bankruptcy. In conclusion, filing for bankruptcy in Texas can often stop lawsuits, depending on the type of bankruptcy that is filed. Chapter 7 and Chapter 13 bankruptcies can stop creditors from continuing with a lawsuit, while Chapter 11 bankruptcies can stop them from seeking repayment.

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Will filing for bankruptcy stop a lawsuit?

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