QUESTION
If I have a court case that’s in arbitration, can I have it discharged before the arbitration is finished?
Asked on Mar 19th, 2017 on Bankruptcy - California
More details to this question:
I was sued in court for defamation. My cross complaint was dismissed. It was then sent to arbitration. We are supposed to go to arbitration. I want to have it discharged through chapter 7 prior to that.
8 ANSWERS
Bankruptcy Attorney serving Cleveland, OH
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Benson Law Firm
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It depends. The bankruptcy code provides that debts are not dischargeable if they are the result of "willful and malicious injury by the debtor to another entity or to the property of another entity." However, those debts will indeed be discharged if the creditor fails to file an adversary action. You should have an attorney help you with this.
Answered on Jun 21st, 2017 at 1:12 PM
Without seeing the exact wording of the complaint, I cannot be completely sure. Certainly you would be better off trying this before a court judgment is issued condemning you. For more information, read 11 USC sec 523.
Answered on Jun 13th, 2017 at 5:59 AM
Commercial & Bankruptcy Law Attorney serving Powell, OH
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Ronald K. Nims
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Possibly, civil cases are generally dismissed and discharged in bankruptcy but not if the damage was caused intentionally. Was your defamation intentional?
Answered on Jun 13th, 2017 at 5:58 AM
Yes. But they can still file an adversary proceeding in your Chapter 7 filing.
Answered on Jun 13th, 2017 at 5:58 AM
Bankruptcy Attorney serving Livonia, MI
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Charles J. Schneider, P.C.
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Defamation is a malicious injury to a person and it may not be discharged in a bankruptcy case.
Answered on Jun 13th, 2017 at 5:29 AM
Bankruptcy Attorney serving Madison, WI
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Richard B. Jacobson & Associates, LLC
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Defamation is a tricky thing, and if it was intentional, then it would be one of the kinds of debt which is NOT discharged in bankruptcy. By filing your case, you get the benefits of the Automatic Stay, but your creditor can resume efforts to collect after the bankruptcy case is over (of course, he might know that intentional torts are not generally dischargeable.
Answered on Jun 13th, 2017 at 5:29 AM
Yes, this would be discharged.
Answered on Jun 11th, 2017 at 9:16 AM
Bankruptcy Law Attorney serving Livingston, NJ
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Law Office of Stuart M. Nachbar, P.C.
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You can file BUT they can request that the Bankruptcy Court let them return for the arbitration, or they can sue you within the bankruptcy to have the debt to them seem non dischargeable.
Answered on Jun 11th, 2017 at 9:16 AM