Answering the Summons

• When a creditor initiates a civil lawsuit, he must file a summons and complaint with the court. This paperwork must state the creditor's name and address, your name and address, the amount of the lawsuit and the reason you're being sued. When you are served with the summons, you must respond within the time frame specified on the notice. If you do not respond to the summons and do not appear in court on the scheduled date, the court may enter a summary judgment against you, which means you lose the lawsuit. If you have not yet filed your bankruptcy petition, the creditor can attempt to collect on the judgment.
  
  

Filing Bankruptcy

• You may file a bankruptcy petition with or without the aid of an attorney. When you file your petition, you must include the names and contact information of all your creditors. You must also include a list of debts you're liable for, including account numbers where applicable. When you file your bankruptcy petition, you must serve each of your creditors with notice of the filing. Typically, you must pay a fee to the bankruptcy clerk of court to send out the notice. Creditors are usually notified within 20 to 40 days of your filing, but any lawsuits or judgments entered within this period are offset by the automatic stay.
  
  

Automatic Stay

• The automatic stay temporarily prevents your creditors from seeking further collection actions against you, and it takes effect when you file your bankruptcy petition. If you've been served with notice of a lawsuit but you file prior to your court date, the proceeding must be halted. If a judgment has already been entered against you but your creditor has not attempted to collect the debt, the automatic stay prevents your assets and income from being garnished. The automatic stay remains in place until your bankruptcy case is either dismissed or discharged. Discharge will eliminate your liability for any debts included in the bankruptcy.
  
  

Considerations

• Filing bankruptcy does not offer absolute protection from creditors. If your creditor believes that the bankruptcy filing would only delay an inevitable event, such as a foreclosure proceeding, he can petition the court to have the stay lifted. Your creditor may also challenge your bankruptcy filing if he believes that you acted fraudulently either prior to filing or during the course of the proceeding. If your bankruptcy petition is dismissed by the bankruptcy trustee for any reason, your creditors are free to resume collection actions against you. If you are being sued for unpaid child support or alimony, the automatic stay protection does not apply.