QUESTION
Can a civil suit be included in a chapter 7 bankruptcy?
Asked on Mar 15th, 2012 on Bankruptcy - Minnesota
More details to this question:
Can a civil suit be included in a chapter 7 bankruptcy? It has not gone to trial or court yet but is scheduled for one week from now. Total suit is 20,000.
18 ANSWERS
Alternative Dispute Resolution Attorney serving Ventura, CA
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Zahn Law Office
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Yes.
Answered on May 30th, 2013 at 8:03 PM
Bankruptcy Attorney serving Hampton, VA
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Haven Law Group, P.C.
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Yes.
Answered on May 30th, 2013 at 2:49 AM
Yes it can be included even if it hasn't gone to trial yet.
Answered on Mar 23rd, 2012 at 6:07 PM
Bankruptcy Attorney serving Concord, CA
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William Rubendall Attorney at Law
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All debts that exist at the time of the bankruptcy filing must be included in the petition. This includes pending lawsuits as well as judgments.
Answered on Mar 20th, 2012 at 9:56 AM
Bankruptcy Attorney serving Buford, GA
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Kenneth A. Parker, PC
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Yes. In many cases, a civil suit it the catalyst for a Bankruptcy filing. Make sure you list the original creditor, any collection agency and the attorney representing the creditor in the civil suit. Once a bankruptcy case is filed, I always file a Stay of Bankruptcy in the Court where the civil suit is pending. This puts the civil Court on notice that you have filed a Bankruptcy case and freezes the civil suit while your Bankruptcy is pending. Once you get a Discharge, the civil suit should be dismissed.
Answered on Mar 20th, 2012 at 9:21 AM
Yes, it can be included.
Answered on Mar 20th, 2012 at 8:06 AM
Business Bankruptcy Attorney serving Raleigh, NC
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J.M. Cook, P.A.
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It depends on the nature of the civil suit. Some torts are non-dischargeable in bankruptcy.
Answered on Mar 19th, 2012 at 2:19 PM
Domestic Relations Attorney serving Huntsville, AL
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Ferguson & Ferguson
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Yes, a civil case or judgment can be included and discharged in a chapter 7 bankruptcy.
Answered on Mar 19th, 2012 at 1:36 PM
Generally you can file bankruptcy on civil collection suits, as long as the debt itself is not non-dischargeable (see 11 U.S.C. 523 for fraud, theft, criminal or alcohol related personal injuries, etc..)
Answered on Mar 19th, 2012 at 1:34 PM
Bankruptcy Attorney serving Omaha, NE
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Heineman Law Office
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Yes, the civil suit must be listed in your bankruptcy. Your liability for the debt, associated with the lawsuit, will be discharged unless the other party, to your civil suit, files an adversary proceeding in the bankruptcy court, to object to the discharge of that debt.
Answered on Mar 19th, 2012 at 1:03 PM
You should consult with your bankruptcy attorney about this. Whether an award in the civil suit is dischargeable will depend upon the grounds for the suit. Suits for intentional torts, and in particular those involving dishonest behavior such as fraud, are not dischargeable. Awards for breach of contract may very well be dischargeable. If your bankruptcy attorney says it will be dischargeable, have the attorney file a Suggestion of Bankruptcy in your civil case. It may very well stop the proceeding in its tracks and save you time and money.
Answered on Mar 19th, 2012 at 12:54 PM
Bankruptcy & Debt Attorney serving Syracuse, NY
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Theodore Lyons Araujo
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Yes. As long as there is no fraud or criminal restitution issues that law suit will be discharged in Bankruptcy. The first thing you need to do if and when you get sued is file an Answer. The summons will tell you that you must "appear" by way of an Answer in 10, 20 or 30 days, "depending on the method of service." PLEASE CHECK THE LAW IN YOUR STATE AS YOU MAY ACTUALLY HAVE TO APPEAR IN COURT, AS IN VIRGINIA, IN ORDER TO AVOID A DEFAULT! You need a lawyer, but if you cannot afford one right away, rather then do nothing and have a judgment entered against you, is to "appear" by filing something! Many people think this means they have to go to Court and this is incorrect. 90% of all lawsuits end in Default Judgments because the defendant (person getting sued) did not file an Answer. I recommend you go to the free form I have on my website. Print it out and fill it out as instructed. You must answer the numbered paragraphs on the Complaint by writing them into the appropriate lines in the Answer. The Answer will allow you to preserve your rights and will prohibit a default judgment (i.e. you did not show up) from being entered against you. Mimic the paperwork you got when you got sued. Answer all the paragraphs of the Complaint by writing the numbers in lines 1, 2 or 3. Almost 100% of attorneys will deny what is owed because they did not do the calculations and do not know what the basis for the number is... When you file the Answer that is your "not guilty". You have the right to make the person suing you (Plaintiff) prove their case, but you must also answer the complaint truthfully. Make sure you fill in the name and address of the attorney suing you before you bring this paperwork to the Court. Mail it to the attorney suing you right away! Good Luck!
Answered on Mar 19th, 2012 at 12:45 PM
Bankruptcy Attorney serving Hayward, CA
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Carballo Law Offices
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Yes.... you can file and stop the lawsuit and discharge the debt. If there is an allegation of fraud and intentional wrongdoing then the party suing you may file a lawsuit against you in bankruptcy court (called an adversary proceeding) or ask the bankrutpcy court to allow the lawsuit to continue in the state or other court.
Answered on Mar 19th, 2012 at 12:40 PM
Daniel James Wilson
Usually, unless it involves fraud.
Answered on Mar 19th, 2012 at 12:09 PM
Bankruptcy: Creditor Attorney serving Grand Island, NE
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Milner Neuhaus & Judds
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Yes, a civil suit, even if it has gone to judgment, can be included in a Bankruptcy. There are a very few exceptions.
Answered on Mar 19th, 2012 at 12:09 PM
Bankruptcy Decision Attorney serving San Diego, CA
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Law Office of Daniel G. Shay
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Yes, normally a civil suit would be discharged in a Chapter 7 so long as no fraud, etc.
Answered on Mar 19th, 2012 at 12:05 PM
Bankruptcy Attorney serving Livonia, MI
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Charles J. Schneider, P.C.
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Yes - but whether it will be discharged may depend on the nature of the civil suit.
Answered on Mar 19th, 2012 at 12:05 PM
Chapter 13 Bankruptcy Attorney serving Bloomington, MN
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Gregory J. Wald
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Yes, you can include the debt that is the subject of your civil suit. The bankruptcy will stop the civil suit against you immediately when it is filed. However, there are some kinds of debts that cannot be discharged in bankruptcy (e.g., fraudulent debts, most student loans, etc.), so your lawyer would need to know more about it.
Answered on Mar 19th, 2012 at 12:04 PM