Jane has $$300,000$ in general unsecured debts and she loses her job. Jane files for Chapter $7$ bankruptcy. Within $30$ days, American Express $($Jane$$s credit card$)$ sues Jane for the $$10,000$ of debt that Jane owes American Express. What will happen with this lawsuit?

If Jane does not immediately pay American Express the $$10,000,$ the creditor $($American Express$)$ can demand $$2,000$ in punitive damages.

Jane simply notifies American Express she has filed a petition in bankruptcy and there is an automatic stay of this type of legal action against Jane $($the lawsuit becomes part of Jane$$s Chapter $7$ bankruptcy$).$

When Jane is sued by American Express, Jane must go to court and defend herself in this lawsuit.