QUESTION
Can I file bankruptcy even if there is a law suit filed against me? And if yes, what kind of bankruptcy?
Asked on May 26th, 2013 on Bankruptcy - California
13 ANSWERS
You can file a bankruptcy petition when there is litigation pending against you. Which Chapter to file your petition under should be discussed with competent bankruptcy counsel. Whether the debt forming the basis of the lawsuit is a dischargeable one should also be discussed with your bankruptcy counsel.
Answered on May 29th, 2013 at 10:40 AM
Commercial Attorney serving Columbia, SC
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Gleissner Law Firm, LLC
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Being a defendant in a law suit does not prevent you from filing a bankruptcy. In fact, the filing of the bankruptcy will automatically stay a civil law suit and may result in the civil law suit being dismissed. If the law suit that you are referring to is a criminal matter or an suit that is brought by the state to enforce its police powers (as in attempting to prevent you from selling illegal securities) than the bankruptcy will not stop the law suit. But, the law suit still does not prevent you from filing bankruptcy. Generally, there are two types of bankruptcies that individuals file: Chapter 7 liquidations and Chapter 13 reorganizations. Which bankruptcy to file depends on many different questions and what the goal of the bankruptcy is. If the goal is to give up your assets and start fresh, Chapter 7 may be the correct option. If the goal is to cure a deficiency in house payments and save your home, Chapter 13 may be the correct option. Unfortunately, you did not provide enough information to determine what chapter would best suit your goals. We would recommend contacting a consumer bankruptcy attorney to assist you. Many consumer bankruptcy attorneys will provide you with a free initial consultation.
Answered on May 29th, 2013 at 10:40 AM
General Practice Attorney serving Coeur d'Alene, ID
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Michael B. McFarland, PA
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Yes. You should talk to an experienced bankruptcy attorney about the different bankruptcy chapters.
Answered on May 28th, 2013 at 12:13 PM
Bankruptcy Attorney serving Phoenix, AZ
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Law Office of D. L. Drain, P.A.
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Please understand that bankruptcy is a very complicated process. It is wise to talk to an experienced bankruptcy attorney before deciding to take this important step.
Answered on May 28th, 2013 at 10:34 AM
Yes, you can file any kind of bankruptcy that you are eligible to file. The filing of a bankruptcy will stop the lawsuit in its tracks. However, without knowing what kind of lawsuit this is I can't tell you whether that debt will be discharged in bankruptcy.
Answered on May 27th, 2013 at 10:46 PM
Deborah F. Bowinski
Yes, you can certainly file. The type of case will depend upon your specific circumstances. You should meet with an attorney to evaluate your situation.
Answered on May 27th, 2013 at 10:20 PM
Debt Settlement Attorney serving San Diego, CA
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Law Offices of Kathryn Tokarska
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Yes, in fact some people file bankruptcy to prevent a lawsuit or because they have been sued. What kind of bankruptcy is appropriate to your situation depends on facts not disclosed here.
Answered on May 27th, 2013 at 10:06 PM
Bankruptcy Attorney serving Henderson, NV
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Jeffrey A. Cogan Chartered, a PLLC
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Yes, you can file for bankruptcy as that is one of the primary purposes. If you make more than $75,000 a year, you will probably be in a Chapter 13. If you make less than that, then chapter 7, where you are done in about 4 months and you don't have to pay anyone back.
Answered on May 27th, 2013 at 9:54 PM
Sanford M. Martin
Yes, you may file for bankruptcy relief even if you are a party in a lawsuit now. Many persons file for bankruptcy for relief from such lawsuits. A person may file Chapter 7 if the primary objective is a liquidation of property and discharge of debts. A person may file Chapter 13 if the primary objective is to develop a payment plan to enable payment of debts in 3-5 yrs. As a requirement of the bankruptcy filing, a debtor is required to read information which explains basic options and helps to make the decision. May this information based on your inquiry help you select the right option,
Answered on May 27th, 2013 at 9:49 PM
Bankruptcy Attorney serving Atlanta, GA
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Saedi Law Group, LLC
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Yes you can. Once you file either Chapter 7 or Chapter 13 bankruptcy the lawsuit will have to stop.
Answered on May 27th, 2013 at 9:45 PM
Bankruptcy Law Attorney serving Livingston, NJ
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Law Office of Stuart M. Nachbar, P.C.
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Yes, you can file with a lawsuit pending. Whether the debt is dischargeable under bankruptcy law depends on what the suit is about. As for what chapter, that depends on goals for the bankruptcy, your income, and your equity in your assets.
Answered on May 27th, 2013 at 9:39 PM
Debt Settlement Attorney serving Chicago, IL
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Law Offices of Daniel J. Winter
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Generally yes you can file bankruptcy if there is a lawsuit against you. You need to speak with an experienced bankruptcy attorney to review your whole situation to determine which kind of bankruptcy you qualify for, and the consequences for you. To prepare for your meeting, you need to gather your last 4 years of tax returns, 6 months of pay stubs and your bills and lawsuit papers. It is important to act quickly.
Answered on May 27th, 2013 at 9:06 PM
Personal Injury Attorney serving Glendale, CA
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JT Legal Group
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Yes you can file for bankruptcy. More likely than not, you need to file for Chapter 7 but I don't know your situation. That's a pure guess until I or someone takes a look at your finances and your assets in order to determine the best route. I suggest you visit an attorney and have them figure it out for you. My best advice is don't go for a super cheap attorney because you get what you pay for.
Answered on May 27th, 2013 at 8:44 PM