Can Bankruptcy Stop A Lawsuit From A Debt Collector?

Yes. When you file for bankruptcy protection, under Chapter 7 or Chapter 13, the filing triggers an injunction known as the Automatic Stay of Bankruptcy. This is a powerful federal injunction against your creditors that stops most collection actions, including debt collection lawsuits. Upon receiving notice of the bankruptcy, the debt collector must dismiss the lawsuit or face possible sanctions from the bankruptcy court.

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