Legal Question in Bankruptcy in California

a) If there is a class action lawsuit directed against a company, and the company declares bankruptcy, does this interrupt the suit?

b) Does it make a difference if the bankruptcy is Chapter 11 or 7?

c) After reorganization is complete, in the case of Chapter 11, is the suit still valid?

d) If the suit is NOT still valid, can the suit be refiled?

Thank you very much for your time.


Asked on 9/24/09, 11:53 pm

1 Answer from Attorneys
Robert F. Cohen Law Office of Robert F. Cohen

Any bankruptcy automatically stays (stops) all collection efforts during the bankruptcy. Once the debts are discharged, then there can be no collection efforts thereafter.

In the case of a Chapter 11, there is a possibility that the suit might remain somewhat intact. If there's a class action lawsuit, your attorneys should consult with bankruptcy attorneys to figure out how to and if they should proceed.

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Answered on 9/25/09, 3:03 pm


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