Lawsuits During Your Bankruptcy Case

Posted on June 1, 2014 · Posted in Bankruptcy Case, Lawsuits

There are several other types that can be declared nondischargeable, but this only by a bankruptcy court order.

In these cases, the creditor will have to file a lawsuit in your bankruptcy and produce evidence as to why the debt should not be discharged. If the creditor doesn’t file the lawsuit before the bar date (sixty days after Meeting of Creditors), the debt will be discharged with the other in your bankruptcy. The automatic stay does put a stop to regular lawsuits in progress as soon you file your bankruptcy petition, and the stay blocks any new suits during the time it is in force.

However, there are other kinds of legal actions, known as “adversary proceedings,” that are lawsuits in the bankruptcy court where your case is filed. These lawsuits can go on even after the automatic stay is in place if they are related to your bankruptcy case. Creditors can prevent certain kinds of debts from being discharged by initiating an adversary proceeding. These kinds of debts include the following:

    • Debts incurred by fraud, under false pretenses, or through false financial statements.
    • Debts due to willful or malicious injuries you can cause.
    • Some kinds of marital debts.

If you have fallen behind on your bills and are being harassed by creditors contact a bankruptcy lawyer at Conlong & Fong today. Call (916) 971-8880 to see if you qualify to file bankruptcy and get a new fresh start.