Q: What happens if I am being sued and file for bankruptcy?
I have a payment hearing coming up.I return to work in a week. Won't have the rest of the money for a couple weeks after that for attorney to file.
A: A bankruptcy filing acts as an automatic stay against all collection activity. The creditors may not directly contact the debtor once the petition is filed. No letters, no telephone calls, nothing. Of course, the creditors may contact the debtor's attorney. This rarely happened in the cases I handled for debtors over the last 28 years.
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