Transcript:
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It is true that bankruptcy uh can help tremendously with uh lawsuits or judgments that are against you. So, it’s very common that uh once debts start getting behind uh especially credit cards that uh eventually that credit card company is going to give up their calling and pestering you and they’re going to refer that to an attorney who’s going to file a collection lawsuit against you. If you file bankruptcy, either chapter 7 or 13, as soon as the case is filed, that puts a stop to that
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lawsuit and it uh it’s over and it doesn’t continue moving forward and that uh creditor cannot come back and sue you in the future. If it’s already gotten to the point where it’s gone to court, the lawsuit against you, they’ve received a judgment, which means a court has said that legally, yes, you do owe that debt. Then, uh, it can wipe that out once the bankruptcy is filed as well. and that judgment. Uh once they have that in hand that legally you do owe the money, they can also then begin garnishment
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proceedings to start zapping your bank account when you least expect it uh to start taking money out of out of your bank account when your paycheck comes in. So um uh that’s another uh thing that that bankruptcy will stop. you need to be concerned about. But uh lawsuits, judgments, and then even a possible garnishment, uh bankruptcy will put a stop to that immediately.
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