A New Jersey bankruptcy will help someone with a lawsuit. The legal process varies based on the type of lawsuit, but typically the process is as follows. A person is served with a summons and complaint. The summons explained that you are sued and your rights, including how you may respond to the lawsuit. The complaint explains why you are being sued and the amount of money that the plaintiff is requesting.
Typically, an answer to the lawsuit must be filed within a certain time period and then a court hearing is scheduled. The defendant must attend the court hearing to contest the lawsuit. The Plaintiff may prevail by either winning in court or by winning by default, in the event of no response. If the plaintiff wins by any means, the judge will enter a judgment for the amount that is due to the plaintiff. After the judgment is entered, typically, the Plaintiff will try to collect the money, or file a lien against someone’s house. The Plaintiff may attempt to collect the money by levying on a bank account or attaching one’s wages.
Immediately upon the filing of a bankruptcy petition, the lawsuit must stop, no matter the status of the lawsuit. If the bankruptcy petition is filed after the lawsuit is filed and prior to the court hearing, than there is no need to attend the court hearing. If a judgment was entered and the bankruptcy case is filed immediately thereafter, than the creditor may not pursue the debtor for the money.
If the debtor files for chapter 7 then typically the debt is eliminated. If the debtor files for chapter 13, the debtor may possibly eliminate the debt as well.
The Law Offices of Robert Manchel limits their practice to bankruptcy and foreclosure resolution. Mr. Manchel can be contacted at (866) 503-5655 to discuss your options for seeking bankruptcy protection.