Credit Card Lawsuits

If you fall behind in making payments on your credit card accounts, credit card companies often file a lawsuit to collect the balance that you owe. If the credit card company obtains a judgment against you, the court may order that your wages be garnished, that your bank account be garnished or that assets be levied against and taken away from you. When you file a bankruptcy case, all credit card lawsuits stop immediately. Even if the credit card company has already obtained a judgment against you, any further collection activity, such as garnishments or levies,must immediately stop. The debt that you owe to the credit card company is discharged in bankruptcy, so no further payments on a judgment will be made.