Legal Question in Bankruptcy in California

Creditors rights after filing

I have only one creditor, and he has already sued me. If I lose the case (which I probably will), and I then file bankruptcy, what rights does the creditor have? Can he take any of the assets I have left in the company (a publishing company)? Can he, for example, take the magazine I publish and try to sell it on the open market? Can he take the magazine's subscription list and sell it to those firms seeking addresses?


Asked on 8/31/99, 10:40 am

2 Answers from Attorneys
Mark Markus Law Office of Mark J. Markus

Re: Creditors rights after filing

Hello. I'm not sure in what capacity the company you refer to is held. If it is a dba of yourself, then the creditor is prohibited from taking any actions against it. Of course, the assets of the company would be an asset of your bankruptcy estate, which you would have to value, and if you don't have sufficient exemptions, the trustee in your case would liquidate those assets. If the company is a corporation, then you would have to value your shares in the corporation. It is difficult to answer because I am unclear on the facts.

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Answered on 8/31/99, 6:47 pm
Marcus G. Tiggs Slate and Leoni, A Professional Corp

Re: Response to Creditors rights after filing

The rights of the one creditor you have depend on various factors. First, the basis of the lawsuit against you may be the type to give rise to the possibility of a complaint to determine dischargeability of debt.

Depending on you connection with the assets of the company and the chapter you file could result in non-exempt assets (possibly the publication, mailing lists, etc) being taken by the bankruptcy trustee and sold to the highest taker and the proceeds used to pay your creditors.

In conclusion, you really need to schedule an appointment with an experienced bankruptcy lawyer (at least for pre bankruptcy planning).

I am a Certified Specialist Bankruptcy Law, State Bar of California; we offer free consultations. 213-625-0161.

Best of Luck

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Answered on 8/31/99, 7:35 pm


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