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CHATTANOOGA, TN, July 30, 2014 /24-7PressRelease/ -- The Atlanta bankruptcy attorneys at Clark & Washington wish to discuss the advantages of filing for bankruptcy after you have been served with a lawsuit.
When a creditor files a lawsuit against you to collect on a debt that has gone unpaid, filing for bankruptcy in Atlanta can protect your assets. As long as you are eligible to file under the bankruptcy code, you can file for bankruptcy even after a lawsuit is filed against you.
If you file for bankruptcy prior to your court date stemming from a filed lawsuit or after a judgment has been entered against you for a debt owed to a creditor, your bankruptcy will erase the debt and the judgement against you, provided the debt is one that is dischargeable.
Whenever you file for bankruptcy, you are given an automatic stay that protects your assets. An automatic stay is an injunction that prevents any creditors from collecting debts from an individual that has declared bankruptcy. The automatic stay goes into effect as soon as you file for bankruptcy. The injunction that is imposed by an automatic stay is not absolute -- it excludes certain forms of debt like child support and debts owed to government agencies for fines. Moreover, if a creditor believes that they have sufficient cause, they can petition the court to lift an automatic stay so they can continue collection attempts.
It also important to consult with a qualified Atlanta bankruptcy attorney when dealing with a lawsuit and assessing your bankruptcy options. Without an attorney at your side, you risk mishandling your case and improperly filing for bankruptcy.
For more information on how bankruptcy can affect a lawsuit filed against you, visit http://www.cw13.com.
About Clark & Washington:
Established in 1983, Clark & Washington is now one of the leading bankruptcy filers in the Southeast. They have locations in Georgia, Florida and Tennessee. Clark & Washington specializes in personal chapter seven and 13 bankruptcy. They offer honest, helpful legal advice to those experiencing financial hardships.
For more information, visit http://www.cw13.com.
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