Getting rid of a lawsuit in bankruptcy depends on a few factors. One of the main factors includes determining
if the liability associated with it is dischargeable. Sometimes a debtor
may receive a lawsuit or learn of being sued and ignore it. This can turn
into a default judgment giving creditors an upper hand on taking more
legal action against you, such as a lien or wage garnishment.
In understanding whether the lawsuit can be discharged, you need to get
clarity on the type of debt liability attached to the suit.
Debts which you may be responsible for if it
doesn’t qualify for discharge:
- Debt related to outstanding student loans.
- Debt obligations related to alimony/spousal or child support.
- Debt owed to a government entity (taxes, restitution, or fines)
- Debt related to DUI that resulted in injury or death.
These are just a few basic case scenarios in which you may not be eligible
to wipe out a lawsuit. If fraud or malicious acts are associated with
the lawsuit this could also hinder chances of a discharge. On a positive
note, you may be able to avoid having a lien placed on your property if
you begin the filing process soon and quickly. In some cases, you may
be able to remove a lien or provide protection for property through
bankruptcy exemptions. Discuss questions and concerns with an experienced Dallas / Fort Worth