Legal Question in Bankruptcy in California
Double Bankruptcy question
I had a civil suit pending when I filed for bankruptcy - shouldn't the civil suit now be dismissed since the case is being heard in bankruptcy court? Also, why would a creditor fight a no asset Chapter 7, even if they think their claim in not dischargeable when it's obvious the debtor has no money, no assets, a single mom, with no job?
1 Answer from Attorneys
Re: Double Bankruptcy question
Without knowing the specifics of your case, it's difficult to answer. If you're the defendant in a civil suit, the civil case is stayed during the pendency of your bankruptcy. The case will be dismissed if the plaintiff doesn't seek relief from the bankruptcy court.
If the underlying issues involve fraud, intentional injury to another person, injury caused by an intoxicated driver, or child support obligations, for example, these debts are not dischargeable, but must be brought as either motions for relief from stay or determination of dischargeability. On the other hand, if it's a simple credit card debt that was not incurred within three or six months of filing bankruptcy, there's usually no reason to contest the bankruptcy.