Will filing for bankruptcy stop a lawsuit?

Filing for bankruptcy can stop a lawsuit in some cases. In Washington, bankruptcy law is governed by the federal Bankruptcy Code. This code states that when someone files for bankruptcy, any lawsuits against them are put on hold or halted, which is called an "automatic stay". This means that creditors are not allowed to pursue collection activities against the debtor, including lawsuits. However, there are certain exceptions when filing for bankruptcy will not stop a lawsuit. If a creditor has obtained a judgment against you before you file for bankruptcy, they can continue to attempt to collect on it even when you are in bankruptcy. In addition, exceptions can be made if the court decides that it is not in the best interests of creditors for the automatic stay to apply. Finally, filing for bankruptcy may not necessarily stop all lawsuits. Other parties involved in the lawsuit, such as co-signers, may still be liable for the debt if the debt was jointly held. In this case, the other party may still be liable for the debt, even if the debtor is in bankruptcy. In conclusion, filing for bankruptcy can stop a lawsuit in many cases, but not always. Whether it will stop a particular lawsuit depends on the specifics of the case. It is best to discuss the situation with a lawyer to determine the best course of action for your particular situation.

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Will filing for bankruptcy stop a lawsuit?

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