Lawsuits and Bankruptcy
By L. Jed Berliner, Western & Central Massachusetts Bankruptcy Attorney on Apr 15, 2008 in Bankruptcy Myths, Featured
Repeat after me: “Bankruptcy stops collection lawsuits. Bankruptcy stops collection judgments.” Now, go write this on the blackboard 100 times.
Bankruptcy is a federal right, direct from the U.S. Constitution. Collection lawsuits are state law and they lose out to the superior federal law.
If anyone tells you otherwise, please PLEASE immediately write down all details of the call and contact your attorney. The false statement violates collection laws and can put money in your pocket.
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