QUESTION

What happens if had chapter 7 discharged in 2010 and now have pending 2014 employment lawsuit after filing chapter 7?

Asked on Jul 30th, 2015 on Bankruptcy - New Jersey
More details to this question:
Will need I to have my chapter 7 amended to avoid and problems down the line with the suit being filed? It was a no asset chapter 7 trustee.
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7 ANSWERS

Commercial & Bankruptcy Law Attorney serving Powell, OH at Ronald K. Nims
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If you already had the right to sue when you filed, the award in the lawsuit is property of the estate and the trustee has a right to that money. Unless the trustee abandoned his/her claim, if you listed the lawsuit as an asset and the trustee didn't take any steps to enforce his/her right to the property, then it was abandoned. Usually, the trustee will notify the debtor and the attorney handling the lawsuit that the estate has a claim to the proceeds. That secures the trustee's claim. If the discrimination suit arose after you filed, then the trustee has no claim to the funds. For example, if the discrimination suit alleges that you were wrongfully fired on April 1, 2014. If you filed the bankruptcy on or before March 31, 2014, the award isn't property of the estate. Because you weren't fired yet and didn't have any right to suit.
Answered on Aug 05th, 2015 at 6:49 PM

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As long as you were 100% truthful about everything is 2010, you are okay. This means in all your answers on the bankruptcy petition, and all of your responses at the creditors' meeting.
Answered on Aug 05th, 2015 at 4:36 PM

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First things first: consult your lawyer. And if you didn't have one, you might have needed one. If your employment cause-of-action first arose AFTER you filed your BR petition, there is nothing you need to do. If it arose BEFORE you filed the petition, you might very well have to reopen your case and amend your schedules B and C to show the lawsuit. Obviously you will want to exempt as much as you can of the proceeds of the lawsuit.
Answered on Aug 05th, 2015 at 12:35 PM

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Bankruptcy Attorney serving Las Vegas, NV at A Fresh Start
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You have asked this question before and it still is not clear what the facts really are. Unfortunately, the timing of the facts are crucial. Here is what you need to explain. Are you the party being sued over the employment lawsuit? Or are you the person who wants to sue your employer? Did the events that give rise to the lawsuit happen before or after you filed bankruptcy in 2010? A suit against you in which the misconduct claim occurred before you filed bankruptcy would be covered by your bankruptcy discharge, whereas a suit you bring against an employer for misconduct that occurred before you filed bankruptcy would belong to your bankruptcy estate and the proceeds would be shared by your creditors. If this matter entirely happened after your bankruptcy was filed, your bankruptcy has nothing to do with this suit.
Answered on Aug 05th, 2015 at 12:32 PM

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Appellate Attorney serving Grosse Pointe Farms, MI at Musilli Brennan Associates, PLLC
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See your, or a, bankruptcy attorney with the details. You generally cannot "amend" a past bankruptcy to cover a later, or unlisted liability.
Answered on Aug 05th, 2015 at 12:30 PM

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Bankruptcy Attorney serving Schenectady, NY
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any law suits that originated after filing is not covered under the bankruptcy
Answered on Aug 05th, 2015 at 12:28 PM

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Bankruptcy Law Attorney serving Livingston, NJ
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Your 2010 case should have been discharged by now. The Trustee should have abandoned the suit, if it was in existence at the time of your 2010 filing. If it was not in existence at the time of your 2010 filing, then there is clearly no issue as it would not have been part of your estate.
Answered on Aug 05th, 2015 at 12:26 PM

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