New Jersey Bankruptcy and Pending Lawsuits

If you are facing a lawsuit or other civil actions from creditors, bankruptcy may offer a solution. Bankruptcy puts an immediate stop to all creditor actions to collect on debts, including lawsuits.

At Goldman & Beslow, LLC, our attorneys can offer a free initial consultation to determine if bankruptcy is a solution to the lawsuit or other debt problem you are facing. We have three convenient New Jersey locations in East Orange, Jersey City and Paterson.

Bankruptcy and the Automatic Stay

When you file bankruptcy, you are protected from creditor actions to collect on most debts by an injunction known as the "automatic stay." The automatic stay puts an immediate stop to repossession, foreclosure, garnishments and levies. It also stops lawsuits and judgments.

There are a few exceptions to the automatic stay:

  • Filing bankruptcy will not stop efforts to collect back child support or student loans.
  • If you omit a creditor from the official list of creditors on your bankruptcy, those creditors are free to continue collection actions and lawsuits until they are notified of the filing.
  • Creditors can ask for permission to proceed with personal injury litigation (such as an auto accident lawsuit). However, the creditor would be permitted to go after your insurance, not your personal assets.
  • Punitive damages (such as those for injuring someone in a drunk driving accident) cannot be discharged by filing bankruptcy.
  • Criminal actions are not stopped by the filing of a bankruptcy case.

Seek advice from an experienced bankruptcy attorney before you take any steps that you cannot easily undo.

Contact Our Attorneys About Civil Lawsuits and Bankruptcy

For more information about bankruptcy and pending lawsuits in New Jersey, call our experienced Essex County lawyers today for a free one-half hour consultation at 973-677-9000 or 888-827-5493. Our lawyers serve Essex, Union, Hudson, Passaic, Bergen, Morris, Middlesex, Sussex and other New Jersey communities.