Heres my issue: Parent getting sued over a Credit Card company, going to file bankruptcy to avoid other lawsuits, can a CC company trial be dismissed with bankruptcy? She can't afford a lawyer and she is a senior with a hardship case, trial in 3 mo. help?
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KiloWattKid
ANSWERS: 2
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When Bankruptcy is filed all legal proceedings against the filer stop immediately. So the lawsuit with the credit card company will be stopped until the dischargeability of that debt is determined. But the filer must give a list of all creditors to the court and attempt to notify the creditors as soon as possible once the filing has taken place. Once the filing has been made the case is put off or halted immediately.
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Bankruptcy law provides for the development of a plan that allows a debtor, who is unable to pay his creditors, to resolve his debts through the division of his assets among his creditors. This supervised division also allows the interests of all creditors to be treated with some measure of equality. Certain bankruptcy proceedings allow a debtor to stay in business and use revenue generated to resolve his or her debts. An additional purpose of bankruptcy law is to allow certain debtors to free themselves (to be discharged) of the financial obligations they have accumulated, after their assets are distributed, even if their debts have not been paid in full. http://www.law.cornell.edu/wex/index.php/Bankruptcy
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