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Emergency Bankruptcy Stop Lawsuit

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Emergency Bankruptcy Stop Lawsuit


The filing of a bankruptcy typically stay any pending legal action against the person, family or business that has filed.  Certain exception to the automatic injunctions under section 362 of title 11 are listed. The most common in a consumer case would be a suit to establish paternity or child support. Section 362(a)(3) stays “any act to obtain possession of . . . or to exercise control over property of the estate.”  11 U.S.C.S. § 362(a)(3) .The stay under subsection (a)(3) applies to “any action, whether against the debtor or third-parties, to obtain possession or to exercise control over property of the debtor.  In a chapter 13 the collection of monies from the estate is stayed as well.  If you have been served with a lawsuit and only want time to cure or perhaps vacate a premise, sometimes the automatic stay will help you as a renter but typically you have to post rent with the bankruptcy court if you have a contract with the landlord.  If you are a tenant at sufferance i.e., your mortgage has foreclosed and you are attempting to stay a writ of forcible entry, then the bankruptcy will stay the forcible entry at lease in the Houston and Galveston Division of the Southern District of Texas.


Credit Card Lawsuit

The credit card or unsecured debt is always stayed in the bankruptcy.  Fraud may be something that is plead in the state court action, but the litigation will now be in bankruptcy court and the creditor will have to file an objectio0n to the discharge of the debt based on fraud.  Texas law holds any action taken in violation of the automatic stay is void,  At the highest appellate level, the Texas Supreme Court held that any judgment obtained in violation of the stay was void and such a judgment is subject to collateral attack, which may be made with evidence extrinsic to the first proceeding.

Property of the estate is defined broadly to include “all legal or equitable interests of the debtor in property” when the bankruptcy is filed.  11 U.S.C.S. § 541(a)(1).   This encompasses “all kinds of property including tangible or intangible property, causes of action, and all other forms of property currently specified in the Bankruptcy Act. A debtor’s possessory and ownership interests in property constitute property of the estate.  The automatic stay “deprives state courts of jurisdiction over the debtor and his property until the stay is lifted or modified.

Please visit our website for more information about us and bankruptcy. You may also view our video with Bankruptcy Information.

Call us today at (713) 974-1151 to schedule a no-obligation consultation or feel free to email us at consumerlaw@busby-lee.com.

We provide bankruptcy services in the greater Houston metro area including the cities of Katy, Sugarland, Pearland, Friendswood, Clear Lake and Galveston. We also handle cases from The Woodlands, Spring and Tomball and cases in Baytown and Channelview.

We handle bankruptcy cases in all of these counties: Brazoria, Chambers, Galveston, Matagorda, Austin, Brazos, Colorado, Fayette, Fort Bend, Grimes, Harris, Madison, Montgomery, San Jacinto, Walker, Waller, Wharton