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  1. #1
    Join Date
    Jul 2008
    Posts
    6

    Question Can You File Bankruptcy After Being Served With a Collections Lawsuit

    My question involves bankruptcy in the state of: CA

    If there are multiple civil/collections case filings for me from one law firm - multiple loans with same company, different dates = multiple case filings in one day by junk debt buyer - which is obvious a tactic to get me to NOT respond as one of them is unlimited and they could have put them all in one right? If I were to file bankruptcy do I need to file that as a response to each suit, or does the notification from the BK court take care of that? I ask because it is $300 per response. Since collections cease I am not worried about a judgement if I have the stay of the BK, so why spend $300 per case to do that right? (These are non dischargeable private student loans which would be restructured through a Chapter 13)

    I dont want to NOT file a response when I should and for some reason be unprotected, but I also don't want to spend that much money on each response when these loans will be part of the Chapter 13 restructure.

  2. #2
    Join Date
    Mar 2013
    Posts
    18,340

    Default Re: Can Bankruptcy Filing Be the Response to Collections Suit

    When you file for bankruptcy, you list all your debts and pending lawsuits on the bankruptcy petition forms.

    Once the bankruptcy petition is filed with the court you (or your attorney) should only need to send copies directly to the plaintiffs' attorneys without you having to spend any money filing answers to each complaint (if that's the $300 each that you were referring to).

    Once the creditor/plaintiff gets the copy of the bankruptcy filing it's up to the creditor/plaintiff to cease all pursuit of the debts while the bankruptcy is in progress.

  3. #3
    Join Date
    Sep 2010
    Posts
    478

    Default Re: Can Bankruptcy Filing Be the Response to Collections Suit

    Filing a "Notice of Bankruptcy Filing" in each pending state court matter is not the same as filing an Answer and therefore does not require the payment of the Answer fee ($300 as you mentioned). It is typically done by the Debtor (with a copy sent to the creditor's attny) as a courtesy to the state court judge to advise him/her that no further action can be taken in the matter.

    The Notice simply states that "the Defendant has filed a Chapter ___ in the United States Bankruptcy Court, ____ District of California under Case Number _______. The Bankruptcy was filed on _________, 2015. The Automatic Stay of 11 USC 362 is now applicable to this matter." Date, sign and file the document and there you go. Very simple.

    Des.

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