COVID-19 Bankruptcy Resources

Can I File for Bankruptcy from Home after a Creditor Files a Lawsuit against Me?

Bankruptcy from Home

Have you been served with notice that a creditor is suing you for repayment of a debt? Filing for bankruptcy from home could be the best option you have for dealing with the problem.

A lawsuit is the last step before aggressive action is taken against you to collect a debt. If a creditor wins its lawsuits, it can result in bank levy, wage garnishment, and various other means of securing payment for the debt. Once the court grants a creditor power there is very little you can do to defend yourself, aside from filing for bankruptcy.

The current situation in which we find ourselves leaves a lot of people wondering if they have the same options. COVID-19 and the various restrictions in place mean you might not be able to appear in court or have a face-to-face meeting with an attorney. Luckily, you still have options if a creditor files a lawsuit against you. You can file for bankruptcy from home and enjoy all of the relief it provides.

This includes:

Automatic Stay

Regardless of how you file for bankruptcy, an automatic stay goes into effect once you’ve filed. This legally bars creditors from contacting you to collect a debt. They cannot call, email, mail, or come to your home.

An automatic stay also stops the lawsuit already filed against you. All legal action related to debt is put on hold and remains that way until the bankruptcy moves forward. This doesn’t mean you won’t ever be held responsible for the debt. But it does mean you have an opportunity to get organized and figure out how to handle your situation.

You can read more about how the automatic stay works here.

Discharge or Reorganization of Your Debt by Filing for Bankruptcy from Home

A primary reason people file for bankruptcy is to have their debt discharged or to reorganize their debt so they can afford to repay some or all of it. Which of these options you get depends on the chapter of bankruptcy you choose.

In Chapter 7, you liquidate any un-protected assets you own and pay that money to your creditors. Once that process is complete, the court discharges any remaining debt, eliminating your legal responsibility for paying it.

In Chapter 13, you create a three to five-year repayment plan. Your payments are based on your income. You get to retain ownership of most if not all of your assets and some of the remaining debt at the end of the repayment plan could be discharged.

Discharge or a payment plan is the goal of all personal bankruptcies and it is available when you file for bankruptcy from home.

If you are considering bankruptcy but you aren’t sure how to proceed during these uncertain times, we can help. Our staff can meet with you via phone call or video conference and answer all of your questions about your bankruptcy. Right from the very beginning, filing for bankruptcy from home is safe and socially distanced.

For more information or to schedule a time to discuss filing for bankruptcy from home, contact the Law Office of Robert M. Geller at 813-254-5696 for more information.

Published by
Law Offices of Robert M. Geller, P.A.

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