Can I File Bankruptcy To Discharge A Lawsuit?

May 19, 2009

One of the reasons many people rush to filing bankruptcy is to discharge a lawsuit. While this may be a good way to avoid a garnishment from a judgment, it can be a complicated process that should be handled by an experienced bankruptcy attorney. You may have questions such as:

 

Do I have to file bankruptcy before my creditor gets a judgment?  

In general a debt represented by a judgment is just as dischargeable as the same debt prior to entry of judgment.  Note, however that there are some exceptions dependent on the type of bankruptcy that you file.

 

Will bankruptcy stop garnishment on a judgment against me?  

Bankruptcy will terminate garnishments as to wages earned after the filing of the bankruptcy.  Wages earned before the filing may be recoverable from the sheriff or the creditor if those wages would otherwise have been exempt. 

 

The only possible exception concerns child support collections. In such cases it depends on what chapter bankruptcy case is selected and whether the support first came due before the commencement of the case, etc.

 

A consultation with a Dallas & Ft. Worth area attorney can help answer these and many other questions in more detail. For a free bankruptcy consultation to learn more about discharging debts through bankruptcy contact Fears | Nachawati Law Firm, (866) 705-7584.

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