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Being Sued By CC Company While Filing Bankruptcy

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paints13

Junior Member
What is the name of your state (only U.S. law)? NJ

I'll try to make this as brief as I can. Due to my financial situation I'm in the process of filing Ch7 bankruptcy. It has not been officially filed yet, as I'm in the process of coming up with the needed attorney fees. I am being sued by CC company. I sent an answer to the court requesting the matter be put on hold, since I'm in the process of doing this. I received a notice the other day that my trial date is 7/7. My BK attorney does not do civil cases, but I was told I could go to the trial and request a continuance. In the meantime, I will be able to come up with the rest of the fees to get the filing done, but the filing may not be able to be done before 7/7. (they said they will put a rush on it and I have all of the needed paperwork on my end in order). The CC company is being represented by a law firm specifically for debt collections. Although I can't afford to work out a deal with the CC company, should I try to contact their attorney to discuss the matter? (I had to send them a copy of my answer to the court, as well.) Or, should I just go to the trial, if my filing doesn't get done by then? I have my own business (solely run) and will lose income that day, by having to go to court. Any advice would be appreciated.What is the name of your state (only U.S. law)?
 


latigo

Senior Member
I wouldn’t worry about what the creditor is doing with its collection lawsuit.

As soon as you file your Chapter 7 petition the Section 362 Stay Order will go into effect and their hands will be tied.

And their claim, whether perfected in the form of a judgment or not, will go into the unsecured creditors pool.

Your attorney will explain.
 

cosine

Senior Member
I wouldn’t worry about what the creditor is doing with its collection lawsuit.

As soon as you file your Chapter 7 petition the Section 362 Stay Order will go into effect and their hands will be tied.

And their claim, whether perfected in the form of a judgment or not, will go into the unsecured creditors pool.

Your attorney will explain.
If the judgment is entered prior to filing, then it will be a judgment on the record, even if the debt itself is discharged. It's the difference of some future creditor seeing either a bankruptcy alone, or a bankruptcy following a judgment that got discharged (though in both cases, all the other credit report entries will be there for their usual lifetime). It is in the interest of the OP to find a way to defer the lawsuit until he can file the BK.
 

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