You might not have thought it would ever get this far. One missed credit card payment here, and another missed one there, and soon enough, you do not have the money to pay what you owe. The time has come for your creditor to take action and they are suing you for an unpaid credit card bill. You might think you are left with no options, but the good news is you are wrong. In fact, filing for bankruptcy can stop the lawsuit and it can discharge your obligation to pay back the debt. Of course, you will need an expert bankruptcy attorney in your corner, making sure you have everything in order to successfully move through the bankruptcy process. Read on to learn how bankruptcy can help save you from a credit card debt lawsuit. Contact the New Jersey bankruptcy attorney at the Law Office of Joel Spivack for a free consultation into your claim today.
The Power of the Automatic Stay in Pennsauken, NJ
For those on the fence about filing for bankruptcy, the power of the automatic stay is usually what sways them. An automatic stay makes it so creditors cannot pursue collection actions against you, including lawsuits. The best part is, the automatic stay goes into place as soon as you file for bankruptcy. If your credit card company has already filed their lawsuit against you, it will be halted while the automatic stay is in effect. An automatic stay remains in effect for the duration of the bankruptcy.
The credit card company does have the power to request that the automatic stay is lifted, but they do not typically have the legal grounds to do so. It is important to keep in mind that if your bankruptcy petition is declined or your case is dismissed, the automatic stay will be lifted. It is paramount that you make sure you meet all deadlines and that your forms, paperwork and other documentation is complete and without error. This way you can avoid having your case dismissed by the bankruptcy court.
Discharging Liability in Camden, New Jersey
The second part of the one-two punch that is filing for bankruptcy is that it eliminates your obligation to pay back the debt. Once you receive your bankruptcy discharge, your personal liability for the unpaid credit card debt is wiped out. This means the lawsuit against you will be dismissed soon after your case is discharged. The exception to this rule is, again, if your bankruptcy case is dismissed without a discharge. The credit card debt lawsuit will then pick up where it left off prior to you filing for bankruptcy.
One last important thing to note is that the credit card company has the ability to object to your discharge. They can request your debt not be wiped out if you obtained the debt by fraud or charged your credit card shortly before filing for bankruptcy. In any case, having a bankruptcy attorney on your side will help you navigate the bankruptcy process. They can ensure that you make it out of bankruptcy with a fresh start and without a lawsuit to face.
Contact a Cherry Hill Bankruptcy Attorney for a Consultation About Bankruptcy in New Jersey Today
If you are struggling with debt, you may need a fresh start financially. An experienced bankruptcy and debt relief attorney can help you explore your options and determine the best course of action for you, your family, and/or your business. The experienced New Jersey bankruptcy lawyers at the Law Office of Joel R. Spivack understand the nuances of New Jersey and federal bankruptcy laws, so we can help you protect your interests. Call us anytime at (856) 488-1200 or fill out the online contact form to schedule a confidential consultation. We have an office conveniently located at 1820 Chapel Ave W #195, Cherry Hill, NJ 08002.
The articles on this blog are for informative purposes only and are no substitute for legal advice or an attorney-client relationship. If you are seeking legal advice, please contact our law firm directly.