Lawsuits & Bankruptcy

Lawsuits

Being sued with a lawsuit is one reason many people contemplate filing bankruptcy. It's a factor, but only one, that should be considered.

Generally

If there is a lawsuit or lawsuits against you, it may be a wise course to file bankruptcy. This would cease all attempts to collect on the future judgment they may get.

Do I Answer the Complaint?

If you don't answer it, you have no defense if it goes to trial. Doing nothing could get a judgment against you.

Judgments

Judgment then bankruptcy, or bankruptcy first?

I'd suggest avoid having judgments against you, if you have the option. Sure, the bankruptcy will avoid and remove judgments, but given a choice, it's probably preferable to file the bankruptcy before you get a judgment against you.

Catch-all?

This is not a magic pill that fits all situations. You will want to contact an attorney in your area who can assess your overall circumstance. If you are in the Los Angeles, Ventura or Orange County areas, just ask for help here.