Do I need to File an Answer in Court if I File Bankruptcy in New York City?

If you have been given notice that a creditor is suing you in New York City you do not need to file an answer in court if you decide to file bankruptcy instead. Your civil court proceeding ends the instant you file bankruptcy; you do not need to file an answer in court, and your creditor will not receive a default judgment against you. Bankruptcy’s automatic stay will immediately go into affect protecting you from any creditor action or communications for the duration of your bankruptcy case.

Unless your creditors are able to get relief from the “automatic stay” your civil case will be concluded. Even if your bankruptcy case is thrown out by the court, which is unlikely, your creditors will need to start the civil action against you again which is not easy. Your creditors will have some big hurdles in getting your case back into New York civil court. They will have a fight on their hands in getting another civil action against you for eviction or to continue a consumer credit case against you in New York City after you have filed bankruptcy.

Now that being said, it is possible for a creditor to sue you within bankruptcy court aside from any civil court action as well. A creditor may file an adversary proceeding against you when they are notified of your bankruptcy which could require you to appear in bankruptcy court. But with the protections bankruptcy provides, and with your qualified bankruptcy attorney by your side it’s usually much better to deal with your creditors in bankruptcy court than in civil court. Bankruptcy protection favors the debtor. You have a right to discharge your debts and a right to a fresh start on your finances. You will be protected in the process and your creditors will likely receive only pennies on the dollar or no repayment on your toxic debts at all.

If a creditor is about to start making your life miserable, you should start thinking about your rights as a debtor in New York City. If you have received notice that a creditor is suing you in civil court you should really seek the advice of a bankruptcy attorney. You may be able to avoid bankruptcy, but you should speak to an experienced nyc bankruptcy lawyer before filing an answer in court. Our law firm maintains a 99% Chapter 7 Bankruptcy discharge record in New York City as of 8/31/16. Contact the Law Offices of William Waldner online or at 212.244.2882 to arrange a free bankruptcy consultation today.

**** DISCLAIMER: This article is intended for educational purposes only. By reading no attorney-client relationship has been created. Prior results do not guarantee a similar result for future clients.