A Lawsuit often prompts a Bankruptcy Filing. Lawsuits are one of the motivating factors for filing for bankruptcy. If you have been sued by a creditor or anyone for that matter, you should contact the Waco Bankruptcy Attorneys at The Law Offices 0f R.J.Atkinson for a free initial consultation to see what your options to address the lawsuit may be. In addition to representing people and businesses in Bankruptcy, our Waco Attorneys defend lawsuits in both Texas State and Federal Courts.
Filing Bankruptcy Can Stop a Lawsuit…
The service of a lawsuit or upcoming trial often motivates a defendant to consider filing for bankruptcy. Depending on the facts of the case and what causes of action are alleged in the lawsuit, the best option may be to file for bankruptcy, and prevent the plaintiff or the party suing you from ever getting a judgment. Alternatively, it may be a better option to defend the lawsuit if you have defenses or a good chance of winning the lawsuit. Only you can decide. It’s always good advice to consult with an attorney when you have been sued. Getting legal advice from the Waco Bankruptcy Attorneys at R.J.Atkinson can help you make an informed decision whether to defend the lawsuit or file for bankruptcy.
If you have been sued, it is very important to respond to the lawsuit within the statutory time to do so, or a default judgment can be entered against you. Depending on the causes of action, a default judgment can have a very negative affect if it is allowed to happen. For instance, if the lawsuit alleges fraud, or arises out of an intentional tortious act or injury, then it is not dischargeable in a bankruptcy. That means it can follow you forever or until it’s paid. It may be that you actually have defenses to the lawsuit which can be asserted and that may allow you to have the lawsuit dismissed and collect your attorney’s fees for having to defend the lawsuit. Additionally, you may have a counterclaim against the party who sued you, which if you win, might pay for any damages you might have incurred as well as your costs and attorneys fees required to prosecute the counterclaim.
If by chance the lawsuit against you is from a creditor, and you do owe them something, you may still have defenses. For example, the creditor may be suing for the wrong amount, the statute of limitations to collect has passed, or the creditor may have added to the balance things that may not be allowed by law. Whatever the case is, make sure you have obtained legal advice as to how to proceed. The Waco Attorneys at R.J.Atkinson offer a free initial consultation to assess your lawsuit and can help you to decide what your legal options are to address the lawsuit.
If you file Bankruptcy to address the lawsuit, then immediately after the filing of the bankruptcy the lawsuit will stop. In fact, Bankruptcy can stop the lawsuit, Bankruptcy can stop the plaintiff from getting a judgment, and Bankruptcy can protect your property.
Filing Bankruptcy will stop a lawsuit and can take off the pressure off allowing you to keep your property as allowed by law under the Texas or Federal Bankruptcy Exemptions.
A lawsuit can be very stressful and costly. Whether the cost is financial or emotional, a lawsuit shouldn’t be ignored, since doing so can make things even worse. Most people don’t bother defending a lawsuit or even get a bankruptcy evaluation. Maybe it’s because they don’t understand the legal system, or they feel that they can’t afford to address the lawsuit.
If you live in Austin, San Antonio, Houston, or Dallas, and have received a lawsuit, contact the Waco Bankruptcy Lawyers at The Law Offices Of R.J.Atkinson for a free initial consultation to asses the lawsuit and help you to decide if filing bankruptcy to stop the lawsuit is right for you.
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