Legal Question in Bankruptcy in California

No, you're not out of luck. List the lawsuit in your statement of financial affairs. Then list the creditor in either schedule D,E or F depending on what kind of suit it is. For example, it the lawsuit is about a credit card, put it into Schedule F. List the Creditor and also make sure to give the law firm notice as well. Just list the law firm and indicate "Notice re: Superior Court Case No. XXXXXX," Use the amount that is claimed in the lawsuit. The idea is to include each and every creditor whether or not you dispute the claim. Hope this helps and good luck!

Whether or not the debt is dischargeable depends on the specifics of the civil liability you might be obligated for. If you are being sued for the damages sustained as the result of your tortuous conduct the debt may not be dischargeable no matter when the judgment was entered. (Ex- drunk driving, driving without a license etc.); Further judgments regarding child support, most student loans and some taxes are also not dischargeable.

If the debt is otherwise dischargeable you are not out of luck because of the timing of the judgment. Please note you are obligated to disclose the potential judgment whether or not the debt is dischargeable. Be certain to enter the information for the suit into the appropriate schedule (D, E or F) as well as the Statement of Financial Affairs.

The 2005 amendment to the BK code complicated the rules for filing even a simple, no asset chapter 7 BK. Many attorneys in the field stopped practicing BK because it is so complicated and easy to make a mistake. If you have any further questions feel free to call me or shoot me an email to schedule a free consultation.

Good luck & Thank you for your question!

Dawn R. VanHorn

Attorney & Counselor at Law

www.VanHornLegal.com

(714) 396-4152

(714) 784-2524 facsimile

Consumer Protection Corner- www.vanhornlegal.wordpress.com

The foregoing has been written by Dawn R. VanHorn, Attorney & Counselor at Law. If the designated recipient(s) of this communication have not fully executed a retainer agreement engaging Dawn R. VanHorn and/or VanHorn Legal relating to the subject(s) of this electronic message nothing herein constitutes nor is intended to be legal advice and as a result should not be relied upon as such.