Litigation happens when a creditor seeks to have a judge declare that a debtor owes a certain amount of money. The process is conducted in the superior court, a state court, and starts with the filing of a lawsuit, which is then delivered to the person who ows the money (the Debtor). If the debtor contests the creditor's claim, he/she files an answer and the process begins. Depending on the amount owed and the issues in the case, the litigation could last as long as 3 years or be over in as little as 2 months.
When a bankruptcy is filed it automatically stops or "stays" the litigation in state court. In most cases, the discharge in bankruptcy will end the litigation permanently, but in some cases of fraud or willful misconduct, the litigation could resume in bankruptcy court, or the bankruptcy court could allow the litigation to proceed in state court.