A lawsuit is a way for a creditor to get a court to issue an order, or judgment, that says money is owed the creditor and what that amount is. When someone files a bankruptcy case, an injunction called an “automatic stay” is activated immediately. The stay stops a creditor’s attempt to collect the debt from the debtor. But automatic stays have limitations. They’ll only put an end to litigation involving debts that can be discharged in the bankruptcy.
If you’re being sued, and you own a home, we strongly urge you to speak with a lawyer immediately about filing bankruptcy. A bankruptcy will prevent your creditors from placing a lien on your home or garnishing your hard-earned wages.