Is chapter 7 an option if I am about to lose my job which is my biggest asset?

You definitely need to speak with an attorney about bankruptcy. Haven't your lawyers suggested it, after spending (charging you) all of that money?

Chapter 7 could be an option. If you have much equity in it, you may not be able to it all in the Chapter 7 format. Still, if you income will be basically zero, you have no disposable income so you could file a Chapter 13 in that event, keep the home (you still have to make the mortgage payments) and have a similar outcome as to unsecured debt.

The biggest obstacle to filing a chapter 7 in your case is probably the "means test" which is based on your past 6 months of income. If you are over the median for your family size, you would have to explain why you don't expect to be able to find another job paying a similar salary. You would also have to consider filing 2 cases one for yourself and one for your business, to escape liability for the lawsuit. Liability in a civil lawsuit is typically dischargeable in bankruptcy unless the plaintiff can argue convincingly that the trade secret violation was some type of fraud, willful and malicious injury, or breach of fiduciary duty. If that is a possibility, you are looking at a possible adversary proceeding inside your bankruptcy which would increase the cost substantially. As for assets, your homestead exemption would be based on the amount of equity in your home. If you have too much equity in your home, you may have to surrender it in a chapter 7. Suffice it to say that yours is not a simple case and you would be wise to hire the most qualified bankruptcy attorney you can afford, with experience in business bankruptcy and litigation.

Whether to file Chapter 7 or to file bankruptcy at all, is the product of a review of all of your circumstances. You should sit down with a competent attorney who will take your through all of the factors impacting your life and from that analysis the appropriate decision can be reached. You presented a number of issues that need to be considered; however, there are several factors within each of the issues that need to be considered.

The problem you may be facing may (or may not) be eligible to be discharged through a Chapter 7 bankruptcy. Under 11 USC sec 523, a debt related to the commission of a crime could be ineligible to be discharged through bankruptcy. Depending on the exact facts, a Chapter 13 might be a better option as you can receive a broader discharge encompassing more debts. But in order to qualify for Chapter 13, you will need to have regular income. The measurement of how much you have to pay in a Chapter 13 will be determined by how much you have earned during the past 6 months. So right now, you may be in between a rock & a hard place. I would urge you to meet with the most scholarly Chapter 13 attorney you can find in your community for strategies, because a lot is at stake.

Yes, by all means. Your case is a bit complicated. Call an experienced bankruptcy attorney for a face-to-face meeting. Be ready to pay for the consultation. You want one hour of an attorney's undivided attention. Free consults usually last 15 mins, and usually are with a staff member not an attorney. Discover all of your options. Good luck!

To file a chapter 7 you will need to meet the income requirements under the means test. Depending on your current salary, your income might be too high to qualify. But you might qualify after losing your job. The way income is determined is by taking the average of your last 6 months income. So after 1, 2, or more months being unemployed, your average 6 month income might be low enough to qualify. You will also need to determine if your other assets are exempt, and if they're not whether you are willing to lose them in a chapter 7. A chapter 7 discharge should cover the damage awards in your lawsuit.

Bankruptcy is an option. I say bankruptcy as opposed to a Chapter 7 bankruptcy because a Chapter 13 may be more appropriate depending on the different "causes of actions" for which you are being sued. When you speak to the bankruptcy attorney, you need to determine whether any of the actions against you would be considered non-dischargeable. If so, you may want to look at a Chapter 13.

Chapter 7 is an option, if you can meet the means test. That is whether or not you and your dependents are within the median income for a family of your size in the area in which you live. If you are too far over the median income and unable to meet the guidelines, you might be required to file under Chapter 13. If you lose your job and income during that process, you may be able to convert to a Chapter 7 at that time.