Legal Question in Bankruptcy in California
contractual fraud lawsuit and bankruptcy
Hi,
My husband and I are in the process of filing a bankruptcy. However, I am a co-defendant [along with a non profit governmental entity] in a civil lawsuit for contractual fraud. The gist of the law suit is that I worked for an agency that failed to provide proper care for a mentally retarded consumer. An outside agency reported the nelgect and I reported it as well. The govermental agency removed the consumers from the home. Now, I am named as a codefendant along with the governmental agency in the lawsuit. Although I feel as though we would prevail in the lawsuit, I do not have the energy or money to fight it [I am in pro per]. As stated above, I am in the process of filing for bankruptcy. How will the bankruptcy affect the procedings, will the bankruptcy stop the lawsuit or will the plaintiff automatically be granted a stay?Because I have not been found ''guilty'' does this mean that the lawsuit is dischargeable? Also, according to California Civil Code, I have immunity from civil prosecution as a mandated reporter. Does this make a difference? I just cant find an attorney, nor can I find one that will work pro bono or with the stipulation that he wll be paid if I prevail!!! PLEASE HELP
1 Answer from Attorneys
Re: contractual fraud lawsuit and bankruptcy
The bankruptcy will stay the civil suit once the plaintiff's attorney and the state court are notified. The plaintiff then will have to file an adversary action in the bankruptcy proceeding to determine whether the "debt" is dischargeable. Intentional injury to another "entity" (i.e. person) is not dischargeable, but the BK court would have to make that determination. Please let me know directly if you need further guidance.
By the way, California law requires the employer to pay for a lawyer for you, or at least reimburse your legal expenses. Did you ever tender the lawsuit to your employer to defend you?
Related Questions & Answers
-
Bankruptcy Can i do it my self with the forms at hand Asked 9/19/07, 6:08 pm in United States California Bankruptcy Law
-
Answer due next week I just learned (by calling the court) that an adversary... Asked 9/12/07, 3:30 pm in United States California Bankruptcy Law