Santa Fe, TX Bankruptcy Law Firms & Lawyers

If you file bankruptcy while the lawsuit is pending, the trustee in the bankruptcy case can settle the lawsuit. And if you file the bankruptcy, you MUST list the suit, or you will lose the funds completely.  Best to wait until after the settlement.

?1301 of the bankruptcy code generally prevents a creditor from going after a co-debtor/co-signer while the Chapter 13 is progressing. The lender can file a motion to lift the automatic stay and if granted then pursue their normal collection efforts. However, if the vehicle is being paid for through the plan then the odds are not very likely that the judge will grant the relief.

Assuming you filed a Chapter 13 case (you don't disclose that information for some reason), if your case was dismissed, then your case is over and you did not receive a discharge of debts.  In order to receive a discharge you would need to file a new bankruptcy case. If it is within 14 days of the dismissal, you may be able to seek to have the court reconsider its dismissal by filing an appropriate motion.   You should have filed a motion to modify or suspend your plan payments when you fell behind on the payments. This is a classic example of why it is necessary to have an experienced bankruptcy attorney representing you and one of the many problems that can arise when you fail to do so.  You should consult with an attorney in your area immediately to see about what you can do from this point. Mark Markus has been practicing exclusively bankruptcy law in California since 1991.  He is a Certified Specialist in Bankruptcy Law by the State Bar of California Board of Legal Specialization,  AV-Rated by martindale.com, and A+ rated by the Better Business Bureau.