Can I File For Bankruptcy While A Civil Lawsuit Is Filed? (Solved)

Getting hit with a civil lawsuit while struggling with debt can feel overwhelming. You might be wondering if filing for bankruptcy can help stop the civil lawsuit—or at least slow it down.

The short answer is yes. Bankruptcy can put a hold on most civil lawsuits and sometimes wipe out the debt behind them.

This post breaks down how bankruptcy affects active lawsuits, what types of cases get paused, what doesn’t, and what to expect after you file.

If you’re dealing with both debt and legal trouble, here’s what you need to know.

Can I File For Bankruptcy While A Civil Lawsuit Is Filed?

Yes, you can file for bankruptcy even if a civil lawsuit has already been filed against you. Filing triggers an automatic stay, which immediately pauses most civil lawsuits.

This legal protection stops creditors and plaintiffs from moving forward with collection efforts, including ongoing litigation.

If the lawsuit is about a debt (like unpaid bills or personal injury related) the bankruptcy court may take over and discharge the debt, depending on the case and the chapter filed.

The lawsuit doesn’t get erased, but it usually can’t proceed while the bankruptcy is active.

Filing bankruptcy during a civil lawsuit can protect you from a judgment, wage garnishment, or property liens.

It’s a strategic move for many people facing both legal action and financial pressure.

What Kinds Of Civil Lawsuits Are Affected?

Bankruptcy hits the pause button on most lawsuits that are about money. Here are a few common examples where the automatic stay can step in:

• Lawsuits over unpaid credit cards or loans
• Debt collection lawsuits (from hospitals, landlords, etc.)
• Breach of contract cases, like if a company claims you owe them money for something that didn’t work out

If the lawsuit is based on you owing someone money, chances are bankruptcy will affect it.

The court might even decide that the debt at the heart of the lawsuit gets wiped out entirely. It depends on the kind of debt and what chapter of bankruptcy you file.

Also Read: Can Personal Loans Be Relieved in a Bankruptcy?

Civil Lawsuits That Bankruptcy Won’t Stop

Now, let’s be clear—bankruptcy doesn’t freeze everything.

There are some lawsuits bankruptcy just won’t touch. These kinds of cases can move forward even after you file. The court doesn’t consider them regular debt disputes, so they’re not covered by the automatic stay.

These usually aren’t about money in the same way.

For example, if someone is suing you over child support or alimony, those cases move forward. Same goes for criminal charges or anything tied to criminal activity. Even certain divorce-related cases will keep going, especially if they’re not about splitting debt.

So if you’re dealing with a lawsuit that’s more about custody, support, or criminal penalties, bankruptcy won’t help much there.

Why Timing Matters

Timing can seriously affect how helpful bankruptcy will be.

If the lawsuit against you is still in the early stages, bankruptcy gives you a solid advantage. That automatic stay hits before things get worse. It can stop a judgment from being entered against you.

That’s huge, because once a judgment is in place, it can turn into wage garnishment, liens, or other things that are harder to undo.

On the other hand, if you wait too long and a judgment has already been made, bankruptcy might still help—but it’s messier.

Some debts tied to judgments can still be discharged. Others can’t.

The earlier you act, the more options you’ll likely have.

Also Read: What Debts Can I File Bankruptcy on

What Happens To The Civil Lawsuit After You File?

Once you file and the automatic stay goes into effect, the court handling the lawsuit is notified.

In most cases, everything pauses right there. If the debt involved in the lawsuit is something that can be discharged through bankruptcy, the lawsuit may never start back up.

But sometimes, the other party will ask the bankruptcy court to lift the automatic stay. That’s called a “motion for relief from stay.” If the judge says yes, the lawsuit can move forward. If the judge says no, the case stays frozen.

It really depends on your debt, the facts of the case, and how everything is presented in court.

But most of the time, the person suing you (the creditor) might just stop the lawsuit altogether.

Talk To A Bankruptcy Attorney Before You File

This is one of those situations where talking to a lawyer makes a huge difference.

A bankruptcy attorney can look at your lawsuit, figure out if it qualifies for discharge, and help time your filing just right. If you go it alone, you might miss something that ends up costing you more down the road.

Plus, there’s paperwork, deadlines, and rules you really don’t want to mess up.

A lawyer can help you avoid the traps and make sure you’re protected as much as possible.

Also Read: How Much Does a Debt Settlement Lawyer Cost?

Bottom Line

Yes, you can file for bankruptcy even if there’s a civil lawsuit already filed against you.

In fact, it might be one of the smartest moves you can make if the lawsuit is over a debt you can’t pay. The automatic stay can pause the lawsuit, stop collection efforts, and give you a shot at wiping the debt clean.

But not always. Some lawsuits survive. Some debts don’t go away. And timing is everything.

So talk to a bankruptcy attorney and get clear on your options before things go further.

FAQs

Does Chapter 11 Protect From Lawsuit?

Yes, Chapter 11 triggers an automatic stay, which temporarily stops most lawsuits, including those trying to collect money. But criminal cases or lawsuits involving fraud might still move forward or be allowed to continue if the court lifts the stay.

Can You Sue Someone Who Has Filed Chapter 7?

You can file a lawsuit, but the automatic stay will likely pause it right away. If your case involves debts that can’t be discharged (like fraud, intentional harm, or certain personal injury claims) you may be allowed to move forward, but only after the bankruptcy court gives permission.