Question

Can a creditor sue me if I file for bankruptcy?

A creditor is threatening to sue me for debt. I want to file for bankruptcy and get an automatic stay to get them to stop harassing me. Can a creditor still sue me after I file for bankruptcy?
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Answered By: Eranthe Law Firm
No. That is what the automatic stay is for. The creditor would have to sue for fraud or some other actionable theory in the US Bankruptcy Court or make a motion for relief from the stay to pursue you in Superior Court. This is fairly unusual and you have provided no information on the type of debt so I can't guess if it is probable. Most likely the bankruptcy would stop any lawsuits.

Answer Applies to: California
Replied: 10/19/2011

Disclaimer: The response above does not form an attorney-client relationship. This answer may or may not apply to you and should not be relied upon as legal advice. LawQA does not make any representation as to the expertise or qualifications of this attorney. This attorney may or may not be admitted to state bar of your state.

Answered By: Bankruptcy Law office of Bill Rubendall
Filing bankruptcy creates an automatic stay. This means that creditors must stop collection activities, cannot file lawsuits and cannot enforce judgments.

Answer Applies to: California
Replied: 10/19/2011

Disclaimer: The response above does not form an attorney-client relationship. This answer may or may not apply to you and should not be relied upon as legal advice. LawQA does not make any representation as to the expertise or qualifications of this attorney. This attorney may or may not be admitted to state bar of your state.

Answered By: Carballo Law Offices
You cannot be sued in state or county court without permission from the bankruptcy court and the creditor generally cannot get permission to sue you in state or county court unless there is an allegation of fraud by you and the judge determines that it is best that the suit proceed in state/county court. However, the creditor can sue you in bankruptcy court if they can prove you committed fraud or if you became liable for the debt within the 90-days before filing (or within 1 year in some cases) and the charges were for luxury items or services.

Answer Applies to: California
Replied: 10/19/2011

Disclaimer: The response above does not form an attorney-client relationship. This answer may or may not apply to you and should not be relied upon as legal advice. LawQA does not make any representation as to the expertise or qualifications of this attorney. This attorney may or may not be admitted to state bar of your state.

Answered By: Law Office of Harry L Styron
It depends on the nature of the debt. If the debt is secured by some collateral you still hold, then the creditor can get an order from the bankruptcy court lifting the automatic stay. If it is unsecured then the creditor is out of luck. Should they continue to pursue collection after you file and give them notice of filing then you can get sanctions from the bankruptcy court.

Answer Applies to: California
Replied: 10/19/2011

Disclaimer: The response above does not form an attorney-client relationship. This answer may or may not apply to you and should not be relied upon as legal advice. LawQA does not make any representation as to the expertise or qualifications of this attorney. This attorney may or may not be admitted to state bar of your state.

Answered By: Raxter Law
Generally, filing a bankruptcy petition would stop all collections activity. If they could object to the bankruptcy would depend on the type of debt, etc.

Answer Applies to: California
Replied: 10/18/2011

Disclaimer: The response above does not form an attorney-client relationship. This answer may or may not apply to you and should not be relied upon as legal advice. LawQA does not make any representation as to the expertise or qualifications of this attorney. This attorney may or may not be admitted to state bar of your state.

Answered By: Janet A. Lawson Bankruptcy Attorney
They can only sue you in bankruptcy court if they are claiming you committed fraud.

Answer Applies to: California
Replied: 10/18/2011

Disclaimer: The response above does not form an attorney-client relationship. This answer may or may not apply to you and should not be relied upon as legal advice. LawQA does not make any representation as to the expertise or qualifications of this attorney. This attorney may or may not be admitted to state bar of your state.

Answered By: Law Offices of Robert P. Taylor
The automatic stay will stop any pending/contemplated suit. However, the creditor could potentially sue you in bankruptcy court if they were to claim your debt was non-dischargeable. This is rare and usually arises in cases of fraud i.e. large cash advances/luxury purchases close to filing especially when it's obvious there was no ability to pay.

Answer Applies to: California
Replied: 10/18/2011

Disclaimer: The response above does not form an attorney-client relationship. This answer may or may not apply to you and should not be relied upon as legal advice. LawQA does not make any representation as to the expertise or qualifications of this attorney. This attorney may or may not be admitted to state bar of your state.

Answered By: Eliza Ghanooni, Attorney at Law
Technically, they can sue you within the bankruptcy. However, the chances of that happening are incredibly slim. They will generally sue you or file a non-dischargeability action within the bankruptcy if they think that you committed fraud in incurring the debt owed to them or if you made a lot of charges right before filing the bankruptcy. If none of the above apply and they are a run-of-the-mill creditor, you are likely in the clear.

Answer Applies to: California
Replied: 10/18/2011

Disclaimer: The response above does not form an attorney-client relationship. This answer may or may not apply to you and should not be relied upon as legal advice. LawQA does not make any representation as to the expertise or qualifications of this attorney. This attorney may or may not be admitted to state bar of your state.

Answered By: Ursula G. Barrios Law
Only for an exception to BK, but not what generally happens. File your BK.

Answer Applies to: California
Replied: 10/18/2011

Disclaimer: The response above does not form an attorney-client relationship. This answer may or may not apply to you and should not be relied upon as legal advice. LawQA does not make any representation as to the expertise or qualifications of this attorney. This attorney may or may not be admitted to state bar of your state.

Answered By: The Schreiber Law Firm
No, the automatic stay prohibits any further collection action, including law suits. Upon discharge, the debt is not longer legally collectible, so a suit after finishing bankruptcy cannot be brought either.

Answer Applies to: California
Replied: 10/18/2011

Disclaimer: The response above does not form an attorney-client relationship. This answer may or may not apply to you and should not be relied upon as legal advice. LawQA does not make any representation as to the expertise or qualifications of this attorney. This attorney may or may not be admitted to state bar of your state.

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