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Automatic stay in bankruptcy to stop lawsuit in MA?

I understand that the automatic stay that comes with a bankruptcy petition will stop creditors from trying to collect money but what if a lawsuit has already started or is about to start any day. If I go ahead with the bankruptcy does that mean the lawsuit just stops? Even if the lawsuit is filed in Massachusetts court, since bankruptcy is a federal court thing, right? Thanks.

Automatic stay in bankruptcy

Yes, with some exceptions, such as an action to collect child support, once the bankruptcy court approves of the petition for bankruptcy, all lawsuits, including those filed in state courts, will stop because of the automatic stay.  However, if the particular claim that the plaintiff is pursuing against you remains viable, perhaps because the debt the plaintiff was attempting to collect is not discharged, then the lawsuit may proceed again after you receive you discharge from the bankruptcy court.  This is certainly an issue you should discuss with both your bankruptcy attorney and the attorney representing you on the other matter, if different.  Good luck.  

 

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