Filing bankruptcy to avoid accident lawsuit debt – Is this a feasible option?
Bankruptcy is the only solution for an overwhelmingly large debt load but that doesn't mean that you will mistake it for a magic bullet. There are certain debts that can't be discharged through bankruptcy like back taxes, some student loans and so it needs careful and watchful planning to eliminate such debts. Although bankruptcy is the only option that can relieve you of the obligations and protect you from your creditors, there are some others who wish to get help from bankruptcy in order to repay the accident lawsuit funds. If you too are wondering about the steps that you would require taking in order to avoid lawsuit debt, you might go through the concerns of this article.
Meeting with an accident and being sued
If you were actually met with an accident with someone else, he/she might hold you responsible for the injuries that he has went through during the accident. That person might attempt to hold you liable for all those injuries simply by filing a lawsuit against you. By filing this lawsuit, he will try to show the court that you have caused the damages and injuries and this would possibly be a monetary judgment. If you want to set the process in motion, the other party should file the lawsuit first.
Trying to file bankruptcy after being sued by the opponent party
When there's a lawsuit being filed against you, this won't prevent you from filing for bankruptcy and in order to file bankruptcy you can get debt help from the bankruptcy Court. In order to start off with the process of bankruptcy, you should file a petition and being an individual, you can either file Chapter7 or Chapter13 bankruptcy. As soon as you file bankruptcy, an automatic stay will fall in place.
Avoiding the calls of the creditors through the automatic stay
The best part of filing bankruptcy is that this will prevent the creditors from continuing with their debt collection efforts against you. Apart from your bankruptcy petition, you should also offer a creditor matrix to the court and the court will use this to negotiate with each creditor to inform them about the fact that you've filed bankruptcy and that they can't collect debts from you any longer. The other party who is involved should stop pursuing this lawsuit once the automatic stay comes into effect.
Receiving a bankruptcy discharge and setting yourself debt free
Soon after the automatic stay stops the lawsuit, the civil court will probably render a judgment on the lawsuit after the bankruptcy case comes to an end. When the judgment comes down after the bankruptcy discharge. In case you're not able to pay the judgment, it would be more practical to file bankruptcy after the civil court enters a judgment. In such an instance, there will be a better chance to discharge the debt. Moreover, the bankruptcy court won't discharge debts that are incurred for malicious injury of another person or his property. The court won't also discharge a debt that you've incurred for a death or personal injury by the debtor who was driving an illegal vehicle after going under the influence of drugs or alcohol.
So, if you have been sued for an accident and you're going through an accident lawsuit, it might happen that you're not being able to pay off the dues on your own. If you wish to get help filing bankruptcy, you can consult an attorney who might help you with exact information on the entire process. Ensure that the attorney has your best interests in mind so that you can trust on him and allow him to work your case on your behalf in the bankruptcy court.