Stopping Lawsuits in Texas

| Oct 20, 2010 | Bankruptcy |

If you have unsecured debts that are not paid on time, then the creditor will probably eventually sue you.  When the creditor sues you, you should be served with a copy of the lawsuit telling you that you have a limited amount of time to file an answer.  If you do not file an answer timely, then a default judgment can be taken against you.

Filing bankruptcy almost always stops the lawsuit.  The automatic stay provision of the Bankruptcy Code prevents the lawsuit from continuing.  Filing either a Chapter 7 bankruptcy or Chapter 13 bankruptcy will place the automatic stay into effect.