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Civil Lawsuit Filed before Discharge/Amend Bankruptcy?

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    #1

    Civil Lawsuit Filed before Discharge/Amend Bankruptcy?

    We filed Chapter 7 on 4/15. Our meeting is 5/22. My husband is a general contractor (has an LLC) and received a summons for a lawsuit from a disgruntled client on May 12th; The lawsuit was filed on May 1st but the services he provided for were in 2008. I do think we will win the lawsuit as our attorney says it is frivilous but should we or even can we include the person in the bankruptcy for the amount she is sueing him for just in case we lose? She is sueing both his company and him as an individual and I don't want to go through bankruptcy and then get a 200k judgement. There is no fraud etc involved.

    Thanks!
    Tags: None
    #2
    This is going to get good.

    I don't believe they should have filed that lawsuit if you included that debt, which is the subject of the lawsuit, was before you filed (on 4/15/2009). Your Bankruptcy Attorney should send them a notice on letterhead to "provide (me) with a notice of voluntary dismissal with prejudice within five days of the date of this letter or be advised that we will seek sanctions...".

    If they were "aware" of the Bankruptcy, they should never ever had gone and filed a lawsuit! From your "tone" I would seem to think that you didn't include them in your Bankruptcy petitions and notice. However, I would amend your schedules to include this "pre-petition" debt!!!

    Talk to your Bankruptcy Attorney on Monday!
    Chapter 7 (No Asset/Non-Consumer) Filed (Pro Se) 7/08 (converted from Chapter 13 - 2/10)
    Status: (Auto) Discharged and Closed! 5/10
    Visit My BKForum Blog: justbroke's Blog

    Any advice provided is not legal advice, but simply the musings of a fellow bankrupt.

    Comment

      #3
      Thank you for the response; I will talk to him on Monday but am so stressed! They did not know about the bankruptcy. So do you think I can include it even though the suit was filed after the petition?

      Comment

        #4
        Want to clarify something; we didn't know the suit was coming...so we didn't know we may have a debt...

        Comment

          #5
          Debts incurred after the date of filing can not be included in the bankrupcty estate, which is set on the day of filing. New debt is not dischargeable, at least in my understanding. On the other hand , if you actually owed this client money before you filed, that's another story. But if this is a new (potential) debt, then I don't think it would be dischargeable. As I read your post this is just potential debt at present. But, of course, I would ask an attorney, since the work you did for the client was pre-filing.

          Comment

            #6
            Originally posted by amalejko View Post
            Thank you for the response; I will talk to him on Monday but am so stressed! They did not know about the bankruptcy. So do you think I can include it even though the suit was filed after the petition?
            Good question for your lawyer. It is certainly contingent? So, I don't know what to say. From what you're saying, you didn't think you "owed" any debt, but with the lawsuit, you may be exposed to some liability (new debt)? Very interesting.

            I don't have an answer. I was thinking this was all pre-petition debt. If it's new liability but on a pre-petition event... I have no clue! Of course the argument is that it was for a pre-petition event.
            Chapter 7 (No Asset/Non-Consumer) Filed (Pro Se) 7/08 (converted from Chapter 13 - 2/10)
            Status: (Auto) Discharged and Closed! 5/10
            Visit My BKForum Blog: justbroke's Blog

            Any advice provided is not legal advice, but simply the musings of a fellow bankrupt.

            Comment

              #7
              I'd say this is simply a collection attempt on pre-filing debt. Send them notice of the bk filing. If they want to push it pay $29 and add them to the matrix.
              3/2/09- Filed: chapter 7 / No asset
              4/1/09- 341 Hearing: 1 creditor showed up Got to love family feuds
              4/2/09- Trustee Report of No Distribution Filed
              6/24/09- Discharged and case closed

              Comment

                #8
                My lawyer emailed me back on Saturday He said that even though the suit was filed after the bankruptcy, because my husband performed the work before the bankruptcy, we can add the suit! I can now sleep tonight.

                Comment

                  #9
                  Originally posted by amalejko View Post
                  My lawyer emailed me back on Saturday He said that even though the suit was filed after the bankruptcy, because my husband performed the work before the bankruptcy, we can add the suit! I can now sleep tonight.
                  see, there is hope that there are lawyers out there that will take the time and do the right thing for their client. E-mailing on a Saturday so that you can sleep tonight is a wonderful thing.
                  sleep well !!!!!
                  Southern District of Florida
                  Filed Ch 7 - 8/6/09 341 - 9/14/09
                  Report of No Distribution - 9/18/09
                  DISCHARGE ! 11/23/09 Closed 12/8/09

                  Comment

                    #10
                    Originally posted by amalejko View Post
                    My lawyer emailed me back on Saturday He said that even though the suit was filed after the bankruptcy, because my husband performed the work before the bankruptcy, we can add the suit! I can now sleep tonight.
                    Sign of the impending apocalypse I say!!!


                    An attorney responded on a weekend???!!!???

                    Truly, I warn thee, we live in the End Times!!

                    Grats, btw
                    11-20-09-- Filed Chapter 7
                    12-23-09-- 341 Meeting-Early Christmas Gift?
                    3-9-10--Discharged

                    Comment

                      #11
                      Wow! I am impressed with your attorney. Glad it worked out well for you.

                      Comment

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