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Current civil case for injuries/money owed. What happens to the case if you file Bankruptcy during case?

Discuss the legalities of Bankruptcy Law

Current civil case for injuries/money owed. What happens to the case if you file Bankruptcy during case?

Postby stephon14 » Fri Apr 01, 2011 3:10 pm

I'm currently in a labor dispute civil lawsuit and there will probably be a judgment against our side since we don't have the money to continue to defend ourselves for another year against their attornies on our own, despite having done nothing wrong, and we can't afford an attorney.

5 related QUESTIONS if you would please take the time to number your answers the same (thanks):

1. Current civil case for injuries/money owed. What happens to the case if I file Bankruptcy during the case? For example, does it "end" the case, does the case get "suspended" while/until the b/k is processed? Or does the case just continue simultaneously with the b/k processing?

2. Do I "have" to wait til the END of the civil case until after the official judgment (the actual amount has not yet been stated)...or can I file the b/k and STILL INCLUDE the case on our list of creditors even though there's no official number yet (something like "amount pending")?

3. Ideally, I'd like the b/k filing to STOP the case itself so that I don't have to continue wasting our time fighting it when I don't have the resources. We've heard:

"If they haven't gotten judgment against you, then your bankruptcy filing can and will stop the case.” Is this true or is this possible? For example what happens to discovery and subpoenas? Do they just continue?

3. Also, if I file b/k, will the opposing counsel still continue the case?

4. Is there any ADVANTAGE to filing b/k before the amount is entered in the judgment?

5. Is there some law that allows us to tell the judge "we do not have the money to continue to defend ourselves"...without the opposing party just being awarded whatever amount they state by default?

Please number your answers. No smart allics or "just get an attorney dumbey" answers. We can't afford an attorney.
stephon14
 
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Current civil case for injuries/money owed. What happens to the case if you file Bankruptcy during case?

Postby stephon14 » Fri Apr 01, 2011 3:13 pm

1. You asked: "...Current civil case for injuries/money owed. What happens to the case if I file Bankruptcy during the case? For example, does it "end" the case, does the case get "suspended" while/until the b/k is processed? Or does the case just continue simultaneously with the b/k processing?..." Bankruptcy law specifically excludes pending litigation. That means that you cannot include the lawsuit in your bankruptcy, so the bankruptcy would have no bearing on the civil case, and it would proceed.

2. You asked: "...Do I "have" to wait til the END of the civil case until after the official judgment (the actual amount has not yet been stated)...or can I file the b/k and STILL INCLUDE the case on our list of creditors even though there's no official number yet (something like "amount pending")?..." You would have to list bankruptcy liabilities to the best of your knowledge and belief whenever you chose to file. I'd recommend waiting, since it makes more sense to file when you know, than to file on "about fifty grand" and later discover it's "about three hundred grand".

3. You asked: "...Also, if I file b/k, will the opposing counsel still continue the case?..." Yes. The bankruptcy will have no bearing on pending litigation or ongoing litigation.

4. You asked: "...Is there any ADVANTAGE to filing b/k before the amount is entered in the judgment?..." I cannot see one. I'd advise waiting - what if by some stroke of luck, you WON?

5. You asked: ".... Is there some law that allows us to tell the judge "we do not have the money to continue to defend ourselves"...without the opposing party just being awarded whatever amount they state by default?..." I don't know. That would depend on where you are, as each state has specific laws regarding civil proceedings.

- Stuart
stephon14
 
Posts: 15
Joined: Fri Apr 01, 2011 1:34 pm
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