QUESTION
Will the credit card company sue me if I file for bankruptcy? How?
Asked on May 05th, 2015 on Bankruptcy - Michigan
More details to this question:
I was just wondering if I file for a bankruptcy, will the credit card company just go ahead and sue me? I am thinking about filing but I am a little bit confused still.
12 ANSWERS
Commercial & Bankruptcy Law Attorney serving Powell, OH
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Ronald K. Nims
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Credit card companies can't sue you if you file bankruptcy unless they have to permission of the bankruptcy court. The bankruptcy court will only grant permission if you committed fraud against the credit card company (for example, lied on the application - you're the Bill's Burgers Bill Gates not the Microsoft Bill Gates ) or if you ran up a lot of charges shortly before filing bankruptcy (don't go on a two week trip to Vegas on your plastic then file when you get back home).
Answered on May 07th, 2015 at 4:16 AM
Deborah F. Bowinski
No. Filing a bankruptcy case will protect you from collection actions. If, however, a creditor obtains a judgment against you before you file for bankruptcy they will be able to try to collect by way of garnishment or other lawful means up until the bankruptcy case is filed. The bankruptcy filing will stop all collection efforts.
Answered on May 07th, 2015 at 1:25 AM
No confusion necessary. Filing bankruptcy stops all legal proceedings against you.
Answered on May 06th, 2015 at 12:13 PM
Debt Relief Attorney serving Anaheim, CA
Partner at
Marlin Branstetter Attorney at Law
As long as there was no fraud or abuse in using the credit card the credit card company will not sue if you file bankruptcy.
Answered on May 06th, 2015 at 1:42 AM
2 Awards
If you file for bankruptcy a credit tour cannot see you outside of bankruptcy. However, if the creditor believes that you incur the debt through fraud then there is a deadline within which the creditor must bring suit against you in your bankruptcy. Otherwise the debt will be discharged.
Answered on May 05th, 2015 at 6:04 PM
As long as you list the credit card company as a creditor in your bankruptcy, they are prohibited by the automatic stay from taking any collection action against you, such as a lawsuit. If they do sue you, your bankruptcy is a complete defense and the judge will dismiss their case. You could also prosecute them for violation of the stay.
Answered on May 05th, 2015 at 5:33 PM
If the credit card company sues you after you file bankruptcy, every bankruptcy attorney in the state will want to represent you. The judge will slap the credit card company's attorney and will impose a fine on them. You will be entitled to a wad of cash for your inconvenience and your attorney's fees will be paid by the creditor. You could even bring in the judge from the state court action on this matter, and that judge would really make the creditor's attorney's life a living hell. Sounds like a fun day in court!
Answered on May 05th, 2015 at 5:29 PM
Real Estate Attorney serving Florence, KY
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Linda S. Novakov & Associates, PLLC
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Filing a petition for Bankruptcy imposes an automatic stay, which means that no creditor can continue to attempt to collect money from you, including filing suit for collection. The purpose of bankruptcy is to give a debtor a "fresh" start. Chapter 7 bankruptcy wipes out unsecured debt, with the exception of Student Loans and in some cases income tax liability. There are other exceptions - however, all debt and all assets must be listed in the petition. You must be able to meet the means test guidelines with regard to income for Chapter 7 discharge. You should gather all your income and debt documentation and make an appointment to speak with a competent attorney to assess your situation.
Answered on May 05th, 2015 at 5:07 PM
Bankruptcy Attorney serving Madison, WI
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Richard B. Jacobson & Associates, LLC
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First things first: find an experienced bankruptcy lawyer. It's almost always worth the investment to be relieved of the uncertainty your question discloses. Once you file a bankruptcy petition, there comes into effect an Automatic Stay, which prohibits virtually all your creditor from taking any action at all to collect from you. That's one of the major benefits of bankruptcy. At the end of the case (in a Chapter 7 case usually three months after filing) you (in almost all cases) get a discharge, which is a permanent court order prohibiting your creditors from trying to collect on any dischargeable debt. (Certain categories of debt may not be discharged.) Discuss it with a lawyer who can review all the facts and answer all your questions. Good Luck.
Answered on May 05th, 2015 at 4:38 PM
They CANNOT sue you if you file BK. The automatic stay prevents that. The underlying debt will be discharged in the process.
Answered on May 05th, 2015 at 4:35 PM
Debt Settlement Attorney serving Chicago, IL
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Law Offices of Daniel J. Winter
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No, if you file bankruptcy, they cannot sue you, and, generally, they can be eliminated in bankruptcy. But, you should call an attorney for a consultation to see whether you qualify, and whether there might be any problems.
Answered on May 05th, 2015 at 4:11 PM
Appellate Attorney serving Grosse Pointe Farms, MI
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Musilli Brennan Associates, PLLC
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You should not file a bankruptcy without first consulting with an attorney to determine whether or not it is your best course of action. Whether or not the credit card company has filed a suit is generally irrelevant if you indeed do file bankruptcy.
Answered on May 05th, 2015 at 3:55 PM