What Should I Do If a Bank Is Suing Me for Credit Card Debt After Filing for Bankruptcy?

Question from Dixie, What Should I Do If a Bank Is Suing Me for Credit Card Debt After Filing for Bankruptcy?

Answer from AI:

If you have recently filed for bankruptcy and are being sued by a bank for credit card debt included in your bankruptcy filing, there are several steps you should take to address the situation. Here’s a general guide to help you understand your options and actions:

Understand the Bankruptcy Automatic Stay

When you file for bankruptcy, an **automatic stay** goes into effect. This stay is a legal injunction that stops most collection activities, including lawsuits, foreclosures, and garnishments. The automatic stay is designed to give you relief from creditors while your bankruptcy case is being processed.

Steps to Take

1. Verify the Automatic Stay: Ensure that your bankruptcy filing includes the credit card debt in question. The automatic stay should prevent the bank from continuing its lawsuit against you.
2. Notify the Bank: Inform the bank and its legal representatives about your bankruptcy filing. Provide them with your bankruptcy case number and the date of filing. This can often stop the lawsuit in its tracks.
3. Contact Your Bankruptcy Attorney: If you have an attorney handling your bankruptcy case, inform them immediately about the new summons. They can take appropriate legal action to enforce the automatic stay.
4. File a Notice of Bankruptcy: You or your attorney should file a notice of bankruptcy with the court where the lawsuit is pending. This notifies the court and the bank that you are under bankruptcy protection.
5. Attend the Summons: Do not ignore the summons. Attend the court date and inform the judge about your bankruptcy filing. Bring all relevant documents, including your bankruptcy petition and the notice of automatic stay.

Legal Resources and Self-Help

If you do not have an attorney, you can still take steps to protect yourself:

• U.S. Courts Bankruptcy Information: This site provides comprehensive information about the bankruptcy process.
• Consumer Financial Protection Bureau (CFPB): Learn more about the automatic stay and your rights under bankruptcy law.

When to Seek Legal Advice

While the information provided here can help you understand your situation, it is crucial to seek personalized legal advice. A bankruptcy attorney can:

• Ensure that your rights are protected under the automatic stay.
• Communicate with the bank and the court on your behalf.
• Provide guidance on how to handle the lawsuit and any other creditor actions.

If you cannot afford an attorney, consider reaching out to local legal aid organizations or bar associations that may offer free or low-cost legal services.

Conclusion

Receiving a summons from a bank after filing for bankruptcy can be stressful, but understanding your rights and taking the appropriate steps can help you manage the situation. Always consult with a legal professional to ensure that you are fully protected under the law.