The Social Security system is in place to help us through difficult times. Unfortunately, there are some instances in which the system makes our lives even more difficult than they need to be. The day I received the denial letter for my claim, I wasn't sure what I was going to do. After talking with a few friends, I contacted a lawyer. That was the best decision I had ever made. Even with the professional assistance, getting the denial overturned and getting the money that I was owed took several months. I have kept a clear journal of my experience and loaded it with information that can help others get through what can be an impossible time.
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Social security denial - a journal of assistance
Effects of a Lawsuit When You File for Chapter 7 Bankruptcy
Alexis Garcia
Chapter 7 bankruptcy is an option you have available for use if you are in really bad financial shape and new a fresh start. This branch offers debt forgiveness for debts that fall into the category of qualifying debts, and it can help in many other ways too, including by offering relief from lawsuits you are involved in. In fact, here are several things to understand about Chapter 7 and lawsuits.
Effects when you initiated a lawsuit
The first thing to know is that there is a big difference when filing for Chapter 7 with lawsuits when you initiated and filed one versus when someone filed one against you. If you were the person who is filing a lawsuit against someone and are expecting to collect money if you win this case, you could end up having to surrender the money you receive to the bankruptcy trustee. Trustees always ask people who file if they are involved in any lawsuits, and if so, the trustee will have rights to the settlement amount you receive if you win. This is important to know, especially if you expect to receive a lot of money from the lawsuit.
Effects when the lawsuit is against you
If someone else filed a lawsuit against you for the money you owe, the court handles this in a very different way. The court will first review the debt to see if it qualifies as a debt that could be discharged. For example, if this lawsuit is over a credit card bill or medical debt, the court would view these as qualifying debts. Because these debts would qualify for a discharge, the court would inform the person, that filed the lawsuit, about your bankruptcy filing. This person would have to immediately stop efforts to collect this money from you. In other words, filing for bankruptcy would stop the lawsuit from taking place.
Exclusions to the rules
There are times, too, when lawsuits can continue to go against you even if you file for bankruptcy. A good example of a debt that would be excluded from normal bankruptcy laws is a debt you owed for some type of criminal behavior. If you stole thousands of dollars from the company you worked for and were convicted of this crime, you would have to repay this debt even if you used bankruptcy to get out of debt.
If you have questions about lawsuits that you are currently involved in and bankruptcy, you should meet with a bankruptcy law resources such as David M. Todaro Co., LPA.
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