Top Answer
User Avatar
Wiki User
Answered 2007-02-02 20:50:13

We are assuming you mean that YOU had a pending lawsuit against someone? if so, then the answer is likely yes. Disclosing it the suit is correct. If it is a viable suit then the bankruptcy trustee steps in your shoes and sues on your behalf and any money recovered goes to the benefit of your estate (your creditors) What likely happened is that the trustee identified the suit as an asset. If so, an asset bankruptcy case will not close (even though you got your discharge) until that asset has been administered. Standard disclaimer here. If you had an attorney, call her. This is a tricky area and you need to be aware of your rights and the rules. If the trustee did not think it was a valuable asset and abandoned that asset, then you may be able to keep the money. This is a big if. Contact your attorney. And follow and requests that the trustee has provided you.

User Avatar

Your Answer


Still Have Questions?

Related Questions

What happens if you are in a lawsuit and file chapter 7?

If you have a lawsuit, you must disclose it as an asset in your bankruptcy. If you don't list your lawsuit in your bankruptcy papers, you can get in trouble for hiding assets. In addition, the court may decide that you are prohibited from pursuing the lawsuit.

Can you file bankruptcy on a civil lawsuit?

To avoid paying the judgment??? No. Court-ordered judgments are not discharged in bankruptcy.

Can you still file bankruptcy if a credit card company sues you?

Yes, bankruptcy will halt any lawsuit action. If the lawsuit will be included and discharged in the bankruptcy is dependent upon the ruling of the court.

Is Chipco involved in a lawsuit?

bankruptcy - chapter 11

Will your lawsuit against employer be affected by the chapter 11 bankruptcy filing?

Very possibly.

Is product liability lawsuit exempt from chapter 7 bankruptcy asset?

No, it is an asset and must be disclosed.

What is dismissed versus discharged in regards to bankruptcy?

Discharged indicates the bankruptcy has been found valid and the debts that were allowed to be included in the BK have been expunged, (discharged and closed are two different matters). Dismissed means for some reason(s) the bankruptcy filing was not considered valid and the BK petitioner's debts will remain collectible by whatever means the creditor chooses including a lawsuit.

What if a creditor files a lawsuit for a debt that has already been discharged in a bankruptcy?

If it's a small-claims case, answer that the debt was discharged in bankruptcy and attach a copy of the discharge order. Otherwise, contact an attorney to either provide a similar answer *or* take the creditor to Federal court for violating the discharge.

Can a collector who bought your account from the creditor be awarded a lawsuit judgment if the debt was included in your bankruptcy?

There is something amiss here, a debt that is discharged in bankruptcy is no longer collectible. Therefore a lawsuit could not be filed and won nor a judgment awarded to the plaintiff pertaining to such a debt. The involved party should contact the attorney that handled the bankruptcy and have the judgment voided if it is indeed invalid. It would be advisable to acertain if the debt was discharged rather than excluded from the bankruptcy or perhaps sold previous to the filing of the petition.

What if you win a lawsuit after you filed bankruptcy?

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.

How long after you win a third party lawsuit can you file a Chapter 7 bankruptcy?

Winning a lawsuit will have no impact on your ability to file for Chapter 7 bankruptcy. If you are a judgment creditor, the judgment might become an asset of the bankruptcy estate and the bankruptcy trust might choose to sell the judgment or enforce the judgment for the benefit of your creditors.. if someone files bankruptcy on as credit card does that a third party has charged on and the debt is cleared dose the third party continue paying for a debt that is no longer there

How can you prove that a judgment has been discharged in a bankruptcy?

The answer depends on the context. If you properly listed the debt in your bankruptcy, then the bankruptcy cour will have a proof of service showing that the creditor was notified of both the bankruptcy and the discharge. You can get those documents from the court's file and show them to the creditor or the creditor's attorney. If the creditor insists on attempting to collect the debt, you should retain an attonrey to reopen the bankruptcy and file a lawsuit called an adversary proceeding for damages and sanctions against the creditor and/or the creditor's attorney. One point that many people do not realize is that while a judgment can be discharged in bankruptcy, judgment LIENS are NOT discharged unless you file the proper motion with the bankruptcy court.

Can you file a lawsuit on a company that has filed chapter 11?

If the debt occured AFTER they filed BK, yes. If it was from before they filed, must only use the bankruptcy process to get paid/collect, and you will likely be getting much less than you are owed, with the remainder discharged and made no longer due by the court.

What happens if you win a lawsuit while in bankruptcy?

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.

Filing for Bankruptcy?

No one ever plans to file for bankruptcy, but if you ever find yourself in a financial bind, filing for bankruptcy to remove most of your debts may be the only alternative you have to start over again and reclaim your life. By filing for bankruptcy, you can protect yourself from creditors that may try to repossess your property and who often make harassing calls to your home. In the United States, individuals that need to declare bankruptcy can file for either chapter 7 or chapter 13 bankruptcy protection. Chapter 7 bankruptcy protection is the typical bankruptcy that everyone thinks of when they hear the word. In chapter 7 bankruptcy, the courts will try to liquidate your assets in order to pay off your creditors. Once all your assets have been sold off, the rest of your debts will be discharged by the bankruptcy court. Chapter 13 bankruptcy is slightly different. Chapter 13 bankruptcy is often called a working man's bankruptcy and is intended for people that have jobs. In chapter 13 bankruptcy, your bills become reorganized and consolidated. You will then have to work out a payment plan for the courts. Once the court has approved your plan, you have a certain amount of time to pay off your debt according to the plan. Should you fail to adhere to the plan, your bankruptcy protection will be nullified, opening you up once again to creditors. In order to qualify for chapter 7 bankruptcy protection, you need to pass what the government calls a means test. In order to pass the means test and meet the qualifications for chapter 7 bankruptcy, you need to earn less than the median income of the state in which you reside. If you earn more than $167 over the median income of the state you do not qualify for chapter 7 bankruptcy. Many people want to qualify for chapter 7 because it discharges most of their debts instead of making them repay it later as in chapter 13. Chapter 7 and chapter 13 bankruptcies can eliminate most debts, but some debts can almost never be discharged by bankruptcy courts. This includes student loan debts, lawsuit awards, spouse and child support, and most taxes. Also before filing for bankruptcy it is important to know how a filing can affect the rest of your life. For one thing, chapter 7 stays on your credit report for up to 10 years. Chapter 13 bankruptcy will remain on your credit report for 7 years. Having a bankruptcy on your credit report will make it difficult to obtain loans, get credit cards, find housing, or even gaining employment.

Does someone in bankruptcy have to answer a civil lawsuit?

Of course.

If you owe a thousand dollars to chapter 13 but are behind paying what will happen if you do not pay?

The trustee/bankruptcy court can dismiss the chapter 13. Creditors would then be able to pursue collection including filing a lawsuit.

What happens when a chapter 7 bankruptcy is discharged?

The discharge prohibits any attempt to collect from the debtor a debt that has been discharged. For example, a creditor is not permitted to contact a debtor by mail, phone, or otherwise, to file or continue a lawsuit, to attach wages or other property, or to take any other action to collect a discharged debt from the debtor. There are also special rules that protect certain community property owned by the debtor's spouse, even if that spouse did not file a bankruptcy case. A creditor who violates this order can be required to pay damages and attorney's fees to the debtor. However, a creditor may have the right to enforce a valid lien, such as a mortgage or security interest, against the debtor's property after the bankruptcy, if that lien was not avoided or eliminated in the bankruptcy case. Also, a debtor may voluntarily pay any debt that has been discharged. The chapter 7 discharge order eliminates a debtor's legal obligation to pay a debt that is discharged. Most, but not all, types of debts are discharged if the debt existed on the date the bankruptcy case was filed. Some of the common types of debts which are not discharged in a chapter 7 bankruptcy case are: a. Debts for most taxes; b. Debts that are in the nature of alimony, maintenance, or support; c. Debts for most student loans; d. Debts for most fines, penalties, forfeitures, or criminal restitution obligations; e. Debts for personal injuries or death caused by the debtor's operation of a motor vehicle while intoxicated; f. Some debts which were not properly listed by the debtor; g. Debts that the bankruptcy court specifically has decided or will decide in this bankruptcy case are not discharged; h. Debts for which the debtor has given up the discharge protections by signing a reaffirmation agreement in compliance with the Bankruptcy Code requirements for reaffirmation of debts.

What happens to unsecured debts when a chapter 13 bankruptcy is dismissed?

The debts are still valid and creditors can continue with collection procedures including, in most cases, a lawsuit.

What does the voluntary dismissal of a chapter 13 bankruptcy mean for the debtor and creditors and the debtor's credit report?

When any bankruptcy action is dismissed for any reason the debtor(s) lose(s) bankruptcy protection. This means creditors may pursue collection of the debt, including, in most situations filing a lawsuit. A chapter 13 bankruptcy dismissal will remain on the debtor's credit report for 7 years.

Can you file a Chapter 7 bankruptcy after a Chapter 13 has been dismissed?

Yes. It is usually the only other option for a borrower. If not the creditor might seek legal recourse in the form of a lawsuit. Even though the idea of a lawsuit is "scary" it can be a better choice than BK, depending on circumstances of the borrower.

You received a chapter 7 bankruptcy discharge in February 2006 and won a lawsuit in April 2006 What should you do?

The safest option is to contact the bankruptcy trustee for guidance. Generally monies received as a personal injury award are exempt. However, the determination of the status of such, is made by the bankruptcy court.

Is the debt from a personal lawsuit removed when you file for bankruptcy?


Does an attorney have to disclose that he is going to sue you?

No. However, nothing can happen in the lawsuit until you are served with documentation of the lawsuit and have a chance to respond, AFAIK

Can bankruptcy be removed from your credit report if you filed for Chapter 7 but did not complete the proceedings?

No. A bankruptcy becomes a public record as soon as it is filed. Its the same as any other type of lawsuit. Even if they are dismissed, they will still show up when searching for your name. The fact that a bankruptcy was not completed does not negate the fact that it was filed.