SHOULD I GO BANKRUPT BEFORE I GET SUED?
That is a question that often comes up after people have been served with a Statement of Claim.
The answer is that it really doesn’t matter, a bankruptcy will stop the action even if it has already been commenced or a judgement has been obtained.
Bankruptcy and Proposal filings create an automatic Stay of Proceedings – meaning that your creditors are stayed, or stopped, from proceeding with any legal remedies against you from the time the tru…stee files your bankruptcy or your proposal.
If you believe that you will be filing a bankruptcy or a proposal you probably should do so prior to the court action going forward just because the entire action will become a waste of everyone’s time, including the courts.
For more information call the office, at 519-646-2222519-646-2222, to arrange a free consultation