Legal Question in Credit and Debt Law in Massachusetts

Re: filing bankruptcy if court case is pending?

The answer is yet but there's a catch. Once a petition for bankrtupcy is filed, all litigation comes to a halt- it's called an automatic stay. Once you tell the credit card companies you have filed, the lawyers must not take any further action in the case without the permission of the bankruptcy court. The bankruptcy laws have recently changed and it is now much harder to file bankruptcy and have your debts discharged, so depending on your overall financial situation, you may or may not be able to have your credit card debts discharged in bankruptcy.

Re: filing bankruptcy if court case is pending?

Yes. You can file at any time, even if you have a judgment against you. Bankrupty eliminates most - but NOT all - debts and judgments. It won't eliminate student loans or divorce-related debts, for example, but it will eliminate credit card debt. There may be some exceptions, so it is best to consult an attorney if you are thinking of filing. David Baker

Re: filing bankruptcy if court case is pending?

Yes. But only a bankruptcy attorney can explain what debts can be included in a bankruptcy filing, what debts can be discharged, what Chapter you will qualify under, and whether bankruptcy is the best option for you. Once the petition is filed, an "automatic stay" does take effect - which halts most debt collection efforts. To get the best answer you can rely on, you need to have a 'face to face' with Bankruptcy counsel.

Be sure you start gathering important financial documents - like tax returns, pay stubs, the collection notices, and other documents regarding your assets, liabilities, debts and income. With those documents, an attorney can give you clearer guidance.