St. Louis Bankruptcy Lawyers Blog
Yes, it will. When a creditor sues you after you default on a loan, the court will most likely rule in its favor. Once the creditor receives this judgment, it then has the option of doing one of three things: 1) garnishing your wages; 2) levy (freeze) your bank account; or 3) put a lien against your property, like a house. They move quickly to do one of the three things, or they may take their time. I have had clients whose judgment sat around for over a year before the creditor went ahead and started garnishing. Unfortunately, there isn’t a time limit under which they must move on the garnishment (or bank levy and lien attachment).
But once the bankruptcy is filed, all action from the creditor stops. They can no longer continue garnishing your wages, the bank account must be unfrozen, and there is an opportunity to strip off any lien that may have been placed on your asset. But until the case is filed (regardless of whether it is a St. Louis Chapter 7 bankruptcy, or a St. Louis Chapter 13 bankruptcy), the creditor can still legally take money from your paycheck or bank.
And of course, the filing of the Missouri bankruptcy will also discharge the underlying debt that is associated with the creditor that has sued you. This means that the creditor will no longer be able to demand payment on the debt ever again, nor will you ever be obligated to make a payment on it. It quite literally goes away forever.
The St Louis bankruptcy lawyers at The Bankruptcy Company have been helping people get rid of their debts for years. Our staff is prepared to guide you towards financial freedom, and get you the fresh start / clean slate that you deserve. All phone conversations and office consultations are free of charge.