How Chapter 7 Bankruptcy Can Help If You’re Being Sued by a Credit Card Company

Being sued by a credit card company can feel overwhelming and urgent—because it is. Once a lawsuit is filed, creditors are no longer just sending letters or making phone calls. They are actively trying to obtain a court judgment that can lead to wage garnishment, frozen bank accounts, and long-term financial consequences.

The good news is that Chapter 7 bankruptcy can immediately stop a credit card lawsuit and eliminate the debt altogether. If you’ve been sued in Tampa or anywhere in Florida, understanding how Chapter 7 works could make all the difference.

Credit Card Lawsuits Are More Serious Than Collection Calls

When a credit card company—or a debt buyer—files a lawsuit, they are asking the court for permission to collect the debt using legal tools such as:

• Wage garnishment (where permitted)

• Bank account levies

• Judgment liens on non-exempt property

In Florida, judgments can last up to 20 years and continue to grow with interest. Once a judgment is entered, it becomes much harder to protect your income and assets.

That’s why timing matters—and why Chapter 7 bankruptcy is often the most powerful solution.

Chapter 7 Bankruptcy Immediately Stops the Lawsuit

The moment a Chapter 7 bankruptcy case is filed, a federal court order called the automatic stay goes into effect.

The Automatic Stay:

• Stops the credit card lawsuit immediately

• Prevents the creditor from continuing court proceedings

• Halts wage garnishments and bank levies

• Freezes collection activity instantly

Even if the lawsuit is already scheduled for court, the creditor must stop once bankruptcy is filed.

Chapter 7 Can Eliminate Credit Card Debt Entirely

Most credit card debt is considered unsecured debt, which is exactly the type of debt Chapter 7 bankruptcy is designed to eliminate.

In most cases, Chapter 7 will:

• Discharge the credit card debt completely

• Wipe out the basis for the lawsuit

• Eliminate any judgment tied to the debt (with limited exceptions)

Once the bankruptcy is completed, the creditor can no longer legally try to collect the debt.

Bankruptcy Can Help Even If a Judgment Has Already Been Entered

If the credit card company already obtained a judgment against you, Chapter 7 bankruptcy may still help by:

• Discharging the underlying credit card debt

• Stopping enforcement actions like garnishment or levies

• In some cases, removing judgment liens that impair exemptions

However, filing before a judgment is entered is usually simpler and provides broader protection.

Chapter 7 Often Costs Less Than Fighting the Lawsuit

Many people try to fight a credit card lawsuit on their own or negotiate settlements they can’t realistically afford. Court costs, attorney fees, and settlement payments often add up quickly.

Chapter 7 bankruptcy can:

• Resolve multiple lawsuits at once

• Eliminate several credit card debts in a single filing

• Provide a faster and more predictable outcome

For many people, it is the most cost-effective solution.

You May Qualify for Chapter 7 Even If You Think You Don’t

A common misconception is that you can’t file Chapter 7 if you:

• Have a job

• Own a car

• Own a home

• Make more than average income

Many Florida residents still qualify after applying the bankruptcy means test and available exemptions. A consultation with a bankruptcy attorney can quickly determine eligibility.

Timing Matters: Act Before the Lawsuit Goes Further

The earlier Chapter 7 bankruptcy is filed:

• The easier it is to stop the lawsuit

• The fewer collection actions you face

• The more control you maintain over your finances

Waiting can lead to frozen accounts, garnished wages, and added legal costs that could have been avoided.

Get Help Stopping a Credit Card Lawsuit in Tampa

If you are being sued by a credit card company, you don’t have to face it alone—and you don’t have to wait until things get worse.

At chapter7tampa.com, we help people:

• Stop credit card lawsuits immediately

• Eliminate overwhelming debt through Chapter 7 bankruptcy

• Protect income, assets, and peace of mind

Contact us today for a confidential consultation to find out whether Chapter 7 bankruptcy can stop your lawsuit and give you a fresh financial start.