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The answer to this question depends on a number of important factors, including when the claim arose, what type of bankruptcy has been filed and whether the type of claim is exempt under state law. In a Chapter 7 bankruptcy, the court appoints a trustee who is responsible for collecting and selling all of your nonexempt assets for the benefit of your creditors. The lawsuit or potential claim must be disclosed in your bankruptcy papers like any other asset. The trustee might have a claim or lien on the proceeds from the lawsuit. If the claim arose after you filed for Chapter 7, then the trustee has no interest in the lawsuit. In a Chapter 13 bankrupty, you generally keep all of your property while you make payments. In order to keep all of your property, you must pledge to pay all of your excess income over a period of 3-5 years for the benefit of creditors. The lawsuit MIGHT be income that needs to go into the Chapter 13 plan.

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18y ago
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14y ago

Unless the likely judgment was exempted, or the claim was abandoned by the trustee, all or part of it has to go to the Chapter 7 trustee, or all of it to the Chapter 13 trustee. Talk to your bankruptcy lawyer or get one.

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11y ago

you go broke and lose everything

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16y ago

Sure.

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Q: Can you be sued while under bankruptcy?
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Can you file bankruptcy if you were already sued?

Sure. Common.


Can you be sued for a car accident after you have filed for bankruptcy?

Yes, the accident and bankruptcy are two different issues.


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Anybody can file for bankruptcy.


Can you still go through bankruptcy ch 7 if you were sued?

Yes


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Sure


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In general, yes, if you haven't files bankruptcy.


If I was to get to accident and someone else's car and I was being sued and I do a bankruptcy who will be liable?

Bankruptcy is altogether different than criminal settlements


Can you be sued in small claims if you are poverty level?

Absolutely; anybody can be sued. If the court orders you to make a payment which you are unable to pay, you can declare bankruptcy.


What companies will underwrite homeowners insurance while under bankruptcy?

What company will insure you when in chapter 13 if you home is not covered in the bankruptcy. If you have current insurance and the company is going out of business.


How can you get a judgment off your credit report after filing bankruptcy?

If the debt that you were sued over, or the judgment itself was included in your bankruptcy, you only need send a copy of your bankruptcy papers to the credit reporting agencies. The judgment will not "come off", but it should get marked "included in bankruptcy" or "discharged through bankruptcy".


What will happen to your direct deposit while filing bankruptcy?

Direct deposit of any monies while filing for Chapter 7 bankruptcy are safe. However, under Chapter 13 bankruptcy, an automatic payment may be required to the trustee from a direct deposit of wages and other sources of income.


What is the best way to get rid of your assets and file for bankruptcy if you are being sued?

Don't do that. It's called fraud.