Can Your Creditors Still Sue You After Bankruptcy?
Can your creditors still sue you after bankruptcy? Min Austria Assistant at Ascent Law LLC Can your creditors still sue you after bankruptcy? Yes, they can—but they won't. This seems to be one of those questions that causes a lot of confusion and fear, so let's start with the basics. When you file for Chapter 7 bankruptcy, the court automatically protects you from most collection actions by your creditors. However, there are a few categories of collection actions that do not get stopped by bankruptcy. The first category is where the creditor has a valid state court judgment against you (meaning it's not related to an unpaid debt). Creditors with valid judgments against you can still take actions to enforce the judgment after bankruptcy, such as garnishing your wages. The second category is where the creditor has a written agreement to take specific actions against you in order to collect on the debt after bankruptcy. This usually occurs in situations where a creditor is owe...