Legal Question in Bankruptcy in California
Bankruptcy Issue and Copyright Infringement
I was involved in some legal issues involving copyright infringement, and the company accusing me of these infractions wants me to sign a settlement agreement. If I sign the settlement agreement to repay them, and if later on I file for Chap. 7 bankruptcy, can my settlement be included in the filing? I am already considering bankruptcy as an option for my situation, but if I am forced to sign a settlement agreement (pay up to $20,000), I dont think I will be able to afford my debt and that. Any info you be helpful. I live in California.
1 Answer from Attorneys
Re: Bankruptcy Issue and Copyright Infringement
If you enter into an agreement to incur a debt knowing that you are going to file bankruptcy, and therefore not pay it, the creditor can claim you have committed a fraud. Thus, there is a possibility that the debt could be deemed non-dischargeable in bankruptcy court. However, unless you have a crystal ball, there is no way you could know the future. You might get a higher paying job, you might win the lottery, a rich relative may leave you a big inheritance, etc. You might be able to pay the debt back. The law requires you to, at the very least, believe in good faith you will be able to pay the debt back. If, however, even with good intentions you are uanble to pay the debt, you could file bankruptcy. Note that the bankruptcy will not undue an injunction. On the other hand, you may be able to discharge the debt without signing the agreement, depending on what you are being sued for. I would really need to review the accusations being made against you, and look at the agreement they want you to sign to be able to advise you further on this.
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