Bankruptcy and Civil Case exempt

[humalien]

How does Bankruptcy and Civil Case money judgement relate to each other?

I am at the point of starting my Civil Case and wants to file for bankruptcy (chapter 7).

Will the money judgement from my Civil Case be exempt?

Do I need to file bankruptcy after my Civil Case or better now?

[2manybills]

The civil case will be stayed once you file BK. Then if you list the debt on your schedules, which I'm sure you will, it will be discharged in your bankruptcy.

[whipster1]

Not sure what OP is saying. Are you suing someone or is someone suing you??

[humalien]

Not sure what OP is saying. Are you suing someone or is someone suing you??

I'm suing someone.

[music12]

your suit will be considered an asset. depending on the potential value of the lawsuit, the trustee may or may not abandon it. unless its for personal injury (which federal exemptions give up to $16,000 exemption for), it won't be exempt unless you have a wildcard left over for it. but it may very well be abandoned.

you'd have to list it as an asset even if you haven't filed the suit yet - it's a potential suit and therefore part of the bk estate.

i don't know, but i think if you can wait with the civil suit (that is, if you won't miss any statutes of limitations), i would suggest to wait with it until after your bk. this is because the more hypothetical it appears, the more likely the trustee won't want to bother dealing with it and will abandon it thereby giving it back to you. but if you appear close to getting a judgment, the trustee could decide to wait and see, thereby delaying the closing of your case (though it won't affect the discharge).

[keepmine]

Let your bk lawyer know about this.
Part of opposition research in defending civil suits is, to search public records for a bk where the suit may have been property of the bk estate. The defendants lawyers will certain;t notify your trustee.

As someone pointed out, depending on the type of duit and your state exemptions-the proceeds may be exempt anyway.

[humalien]

[LuciluS]

I had a Civil Suit already filed due to a car accident in 3/05. My BK Attorney told me I needed to get the suit settled before I filed bankruptcy as it would/could hold up our discharge and closing of our BK.

I called my Attorney and the case was scheduled for trial on 2/6/09. I told him to offer a settlement immediately. The driver of the car who hit us had the bare minimum $25,000 for Medical Liability. My auto inurance paid $5,000 of my bills and my husband's insurance paid the rest after our deductible of $2,000. I was ignorant on the laws that you could sue the insurance company for more than his Liability. I settled for $15,000. I got $5,000, my medical insurance company got $5,000 and my Attorney got $5,000. Because the accident was so long ago, my auto insurance did not request to be reimbursed.

I know my Attorney who handled the Civil case told me that if the case was still ongoing while I was in BK, the Trustee (or maybe it was a Judge?) would have to approve my Attorney and that there was quite a bit of paperwork involved.

I would think if you file the Civil Case before or during Bankruptcy it would/could hold up your discharge and/or closing. I would seek the advise of your BK Attorney.

Luckily mine was settled & I received my $5,000 in Feb.; therefore, it is not in the 6 month lookback period as we are filing 9/30/09 using Mar-Aug. income.

Luci

[lovebirds]

My bk lawyer told me to speed up the process of settling for my PI case. Can you bluff and try to settle?

[Calthius]

The Trustee will ask you if you have any open suits or any that you are planning to file. So be careful.

[LuciluS]

My bk lawyer told me to speed up the process of settling for my PI case. Can you bluff and try to settle?

Lovebirds: I'm not understanding what you are asking? My BK Attorney told me to get my case settled ASAP, so that's why I called my other Attorney and told him to send a settlement to the other guy's attorney. His Attorney countered and then we counter offered the split between the two.

Not sure what you mean by bluffing. If you have an Attorney, call him and tell him you want to get it settled ASAP. I was honest with my Attorney and told him I needed it settled ASAP as I needed to file BK. Whats a PI?

Luci

[lovebirds]

Lovebirds: I'm not understanding what you are asking? My BK Attorney told me to get my case settled ASAP, so that's why I called my other Attorney and told him to send a settlement to the other guy's attorney. His Attorney countered and then we counter offered the split between the two.

Not sure what you mean by bluffing. If you have an Attorney, call him and tell him you want to get it settled ASAP. I was honest with my Attorney and told him I needed it settled ASAP as I needed to file BK. Whats a PI?

Luci

PI=personal injury

I'm not speaking about you LuciluS. I'm speaking about the OP. If they are not dealing with an insurance company, I doubt they'll get anything from another person in such a short time. Unless that person is rolling in money. I say "bluff" meaning act like you'll be willing to take them to court and win but for the super cheap price of $xxx you will let it go.

Not talking about lying to lawyer. The lawyer will be doing all the bluffing for you.

[LuciluS]

O Ok Lovebirds.

Let me tell the OP how my events occurred. My husband's medical insurance company's law firm basically told me they couldn't help me because they were in OH and not licensed to do business in AR. They told me I needed to hire an Attorney about the 1st of the year in 2006.

I hired an Attorney who handled mine & my now ex's divorce. But like most Attornies, they want to wait to file the lawsuit till the deadline enacted by Law. Why? The longer it goes, the bigger $$ they make. I noticed that when I signed the contract. I'm sure all Attorney's are like that.

So, if you can negotiate with the Insurance Company, more power to ya! I couldn't even get the adjuster of the other guy's insurance company to call me back. If you can't & the accident occurred recently, o me, I'm afraid it could be a couple of years.

My accident was 3/14/05 and we were scheduled to go to trial on 2/6/09 (I think that's right..I know it was the first week in Feb.). That is 4 years my friend.

Good Luck OP!

Luci