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can bankruptcy stop a lawsuit?

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The moment you file for bankruptcy, nearly all lawsuits will stop against you because an automatic stay withholds the creditors from continuing to collect debt from a bankrupt debtor.

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As soon as bankruptcy is filed, the consumer gets an automatic stay. This prevents all the owed creditors from executing their claim through a wage garnishment, bank levy or property lien. It not only stops collections, but almost all legal proceedings.


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Last Updated on: Fri, 8 Jun 2018