As many of you may know, filing for bankruptcy invokes the automatic stay which requires all collection actions and lawsuits to stop . As such, a good way for people to stop lawsuits and a prevent judgments is to file for bankruptcy.
Furthermore, if the Debtor is the one that commenced the personal injury lawsuit, he or she may still be able to keep the proceeds from the lawsuit. Since December, 2010, New York bankruptcy law allows Debtors to choose either the state exemption or Federal exemption on personal injury lawsuits. Depending on the specific circumstances of each case the Debtor may be able to retain as little as $7,500.00 (NY exemption) or much more if the Debtor chooses the Federal exemptions.
Contact us for a free consultation to determine if you qualify for bankruptcy.