A potential client asked me during our initial free consultation if they could still file for bankruptcy if they were just served with a lawsuit complaint.   Apparently the client believed that once you have been sued you can no longer file for bankruptcy.  The truth is you can file for bankruptcy before a lawsuit is filed, after a lawsuit has been filed, or even after a judgment has been entered against you, it makes no difference.

Filing for Bankruptcy in Miami before a lawsuit

The typical example is a debtor who is behind on his or her credit cards or car payments but none of the creditors has filed a lawsuit against them.  This debtor is still eligible to file for bankruptcy and attempt to discharge or wipe out their debts.

Filing for Bankruptcy in Miami while being sued

The typical example is that you recently had a creditor serve you with a lawsuit, whether it’s for an unsecured or secured debt you can STILL file for bankruptcy.  The bankruptcy will likely freeze all activity in the lawsuit and usually, the creditor will dismiss the lawsuit once the bankruptcy is over.

Filing for Bankruptcy in Miami after judgment

The typical example is a debtor who has had a judgment entered against them and now the creditor is attempting to collect on the judgment.  This could be an attempt to garnish wages, to freeze bank accounts, or to seize assets from the debtor.  The filing of the bankruptcy will cease all collection attempts against the debtor and hopefully allow the debtor to discharge the debt in bankruptcy.

If you are thinking of filing for bankruptcy in South Florida and would like to speak with an experienced Chapter 7 and Chapter 13 bankruptcy attorney then please contact Shmucher Law, PL and attorney Ofer Shmucher.  We offer free consultations seven days a week and can be reached at 954-309-5559 or 305-741-5553.