📺 Episode #2: Credit Card Lawsuits During Chapter 7 Bankruptcy: Why ‘I’m Filing’ Doesn’t Stop the Lawsuit

If you’re facing credit card lawsuits while trying to file Chapter 7 bankruptcy, this post covers the harsh reality I learned: saying ‘I’m filing bankruptcy’ doesn’t automatically stop collection lawsuits. Here’s what actually happens and how to protect yourself during the vulnerable gap between starting bankruptcy and getting your automatic stay.

So here’s something nobody warns you about when you’re drowning in debt: filing for Chapter 7 bankruptcy doesn’t immediately stop credit card companies from taking you to court. I know, I know – it should work that way, right? You’d think telling a judge “Hey, I’m going bankrupt over here” would be enough to make everyone back off and give you some breathing room.

😳Well, surprise! The universe has other plans!

Let me tell you about my recent courtroom adventure – because apparently, my life needed more drama than just managing lupus, caring for Mom, and trying to adult my way through financial disaster.

🌪️The Perfect Storm: Multiple Lawsuits Before Bankruptcy Filing✅

Here’s what happened to us, and trust me, we’re not special snowflakes in this situation. When the economy gets rough (and boy, has it gotten rough), credit card companies start filing lawsuits like they’re going out of style. It’s their way of trying to grab whatever assets they can before everyone else realizes the well has run dry.

We weren’t just dealing with one lawsuit. Oh no, that would be too easy. We had two credit card lawsuits hitting us simultaneously, with the delightful possibility of more coming down the pipeline. Because when you’re already stressed about money, health, and family responsibilities, what you really need is multiple court dates to add to your calendar.

This is exactly why we decided to file Chapter 7 in the first place. It wasn’t our Plan A, or even our Plan B. But when you’re looking at potentially several lawsuits from different credit card companies, bankruptcy starts looking less like failure and more like strategic defense.

Financial Recovery Brutal Reality of Bankruptcy Timing

Here’s where things get really fun (and by fun, I mean absolutely terrifying): the court process moves way faster than the bankruptcy process.

Let me break this down because your bankruptcy lawyer might not explain this clearly enough:

What Actually Happens:

• Your lawyer collects mountains of paperwork (6 months of everything: bank statements, pay stubs, profit and loss statements, basically a complete autopsy of your financial life)
• This paperwork collection phase can take 6 months or more
• You have to pay your bankruptcy fees first (anywhere from $2,000 to $3,500 depending on where you live)
• Only after you’ve paid in full does the real filing process begin in many cases
• Then you get your case number and schedule your 341 meeting
• Only then does the automatic stay kick in to stop collections

Meanwhile, those credit card lawsuits? They’re moving through the courts at warp speed compared to your bankruptcy timeline.

What I Learned About Retaining a Bankruptcy Attorney

I made the same mistake a lot of people make – I thought retaining a bankruptcy attorney would immediately stop all collection activities. The magical “automatic stay” that everyone talks about? It’s only automatic after you actually file your petition and get a case number.

Not when you:

• Start thinking about bankruptcy
• Meet or with a bankruptcy attorney
• Begin gathering paperwork
• Tell creditors you’re “filing bankruptcy”

Only when you:

• Complete all paperwork
• Pay your attorney fees
• Actually file the petition
• Receive your case number

This gap between starting the process and getting protection is where things can go sideways fast.

My Courtroom Drama: When the Other Side Doesn’t Show Up

So there I was, facing my first credit card lawsuit while still about a month away from getting my automatic stay in place. I had been using a “standing” defense – basically questioning whether the credit card company had the legal right to sue me. Was it the strongest defense? Honestly, no. But it was enough to potentially buy me some time.

I spent weeks preparing, researching civil procedures, writing opening and closing statements. I even got to court an hour early to watch the case before mine (pro tip: do this if you’re representing yourself – it’s like free education).Plot twist: The first case? Those people never showed up. So I sat there for an hour, getting more nervous by the minute.

⏳When my 9:30 time slot came, I was ready. I had my defense, my paperwork, my game face on. The judge seemed genuinely concerned about me representing myself – he even suggested I go watch YouTube videos about civil procedures in the lobby. (Thanks, Your Honor, but I’ve already fallen down that rabbit hole.)

• 9:30 came and went. No opposing attorney.
• 9:35. Still no attorney.
• 9:37. Judge checks the lobby. Nothing.

And just like that, my case was dismissed with prejudice.

The credit card company’s lawyer simply didn’t show up. Game over. If they want to sue me again, they have to start completely from scratch – and by then, I’ll have my automatic stay in place.

🏦 The Capital One Sequel: Round Two

Of course, life couldn’t let me have just one victory. I’m currently dealing with lawsuit number two from Capital One. But now I’m armed with more knowledge, more experience, and hopefully better timing.

According to my attorney, I’m about two weeks away from getting my petition filed and that precious automatic stay in place. The race is on: will Capital One’s lawsuit process faster than my bankruptcy filing? Stay tuned for that thrilling episode.

What This Means for You: Real Talk About Lawsuit Defense

If you’re in a similar situation, here’s what I wish someone had told me earlier:

Don’t Just Say “I’m Filing Bankruptcy”

Simply responding to a lawsuit with “I’m filing bankruptcy” is not enough. The court doesn’t care about your future plans – they care about the case in front of them right now.

You Need an Actual Defense Strategy

Find something legitimate to challenge:

• Do they have standing (the right) to sue you?
• Is there a breach in the original contract?
• Are they a third-party collection company without proper documentation?
• Are there procedural errors in how you were served?

The Goal is Strategic Delay based on Facts!

You don’t necessarily have to win the case (though that would be nice). However you do need a reason to fight the case. You just need to delay it long enough for your automatic stay to kick in. Every continuance, every procedural question, every properly filed motion buys you time.

Know Your Timeline

Be brutally honest about how long your bankruptcy filing will actually take. If your lawyer says “a few months,” push for specifics. If you’re looking at 4-6 months before filing, and the lawsuit will be resolved in 2-3 months, you need a solid defense strategy.

The Bigger Picture: You’re Not Alone in This Mess

Here’s something that became clear during this whole process: bankruptcy attorneys are swamped right now. My lawyer’s office told me they’re behind because so many people are filing. The economic situation has a lot of us in the same leaky boat.

That’s both comforting and terrifying. Comforting because we’re not alone in struggling. Terrifying because the system is overwhelmed, which means longer wait times and more stress for everyone involved.

Moving Forward: What’s Next

As I write this, I’m still in the thick of it. The first lawsuit with Synchrony Bank is behind me (thanks to a no-show attorney), but Capital One is still lurking. My bankruptcy paperwork is almost complete, and I’m cautiously optimistic about getting that automatic stay in place before any more courtroom drama.

The whole experience has taught me that filing Chapter 7 isn’t just about the bankruptcy itself – it’s about managing all the financial chaos that happens while you’re trying to get protection. It’s about understanding that the process has gaps where you’re vulnerable, and you need to be prepared to defend yourself during those gaps.

The Bottom Line

If you’re facing credit card lawsuits while filing Chapter 7, don’t panic. But also don’t assume that mentioning bankruptcy will make the lawsuits disappear. Be strategic, be prepared, and be realistic about your timeline.

And if you’re really lucky, maybe the other side’s attorney will oversleep and your case will get dismissed. Hey, a girl can dream, right?

Next week, I’ll be sharing what I’m learning about the actual bankruptcy paperwork process – because apparently, they want to know everything about your financial life going back six months. Everything. Including that random $20 your cousin Venmo’d you for gas money.

Have you dealt with credit card lawsuits during bankruptcy filing or at all? I’d love to hear your stories – and your strategies – in the comments below.

Going through bankruptcy can feel isolating, but you’re not alone. Join our supportive community where others share their experiences and insights in a judgment-free environment.”

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“Educational content based on personal experience. Not legal or financial advice. Your situation may be different – consult with qualified professionals.”