Filing for bankruptcy can stop most civil lawsuits because of an automatic stay, which is issued the moment you file for bankruptcy. This court order prevents your creditors from continuing their collection activities, including their attempts to obtain a monetary judgment in a lawsuit. In chapter 7 and 11 bankruptcy cases where a trustee is appointed, the trustee generally becomes the new plaintiff if the debtor was the plaintiff at the time the bankruptcy case was filed.
Will chapter 7 stop a lawsuit?
Filing for bankruptcy can stop most civil lawsuits because of an automatic stay, which is issued the moment you file for bankruptcy. This court order prevents your creditors from continuing their collection activities, including their attempts to obtain a monetary judgment in a lawsuit.
