Can debt be discharged without bankruptcies?

Most consumer debt, including medical bills and credit card bills, is dischargeable. Certain debts, however, are non-dischargeable, meaning they cannot be wiped out through bankruptcy. In other words, when you receive a discharge of your consumer debts, creditors will still be able to collect these categories of debts.

Can someone file bankruptcy on a civil judgments?

Most judgments can be discharged by bankruptcy, except for those that are based on fraud. If you think you qualify for bankruptcy, make sure that you consult with a bankruptcy attorney right away to help you file a petition to place an automatic stay on any judgment and actions enforced by your creditors.

Can a bankruptcy stop a lawsuit from proceeding?

Filing for bankruptcy will stop collection lawsuits from proceeding to judgment, and, in some cases, will take care of debt liability that’s been reduced to a money judgment. Skip to Main Content Find a Lawyer

Can a bankruptcy stop a debt collection action?

Fortunately, filing for bankruptcy can stop some legal actions in their tracks, including a common type—the civil debt collection action. Other legal matters, however, such as a criminal or child support action, will continue to proceed even after filing a bankruptcy case.

Can a debt from a lawsuit be discharged in bankruptcy?

As long as the underlying debt is dischargeable, the lawsuit debt is dischargeable also. If the debt you got sued over was not dischargeable before, it’ll still be nondischargeable once it’s reduced to a judgment. If the lawsuit was based on a claim of fraud or other bad acts, the lawsuit debt may not be dischargeable in bankruptcy.

Can you file bankruptcy if you are sued by a creditor?

If you’ve been sued by a creditor because you can’t pay your debts, filing bankruptcy will stop the lawsuit. You can also file bankruptcy after you’ve already lost the lawsuit and a judgment has been entered against you.

How does bankruptcy stop creditor collection actions against you?

How Bankruptcy Stops Creditor Collection Actions Most people end up with a money judgment after a creditor files a lawsuit for an unpaid debt. If you fail to file an answer or you lose the case, the court will enter a judgment for the amount of the debt, plus other amounts, such as the attorneys’ fees and costs for bringing the suit.