Sunday, March 03, 2013
Does a personal bankruptcy filing stop all lawsuits against a debtor?
A person who owes money is know as a debtor. A creditor seeking to collect money under New York law generally has 3 remedies. The first is garnishing 10% of a debtor's paycheck, the second is liening and levying on the debtor's bank account, checking account or brokerage account and the third is docketing a judgment against real estate to prevent the debtor from selling or refinancing the real estate. A personal bankruptcy filing will stop all lawsuits and prevent garnishment, liens and levies and the docketing of judgments against real estate pursuant to section 362 of the bankruptcy code.
Posted by James Shenwick