Legal Question in Bankruptcy in California

A Chapter 7 bankruptcy discharges all debts with certain exceptions. Thus, a plaintiff shouldn't expect to receive any damages if the defendant files for bankruptcy, except if the defendant committed an intentional act to harm the plaintiff or plaintiff's entity. If the defendant is insured for his/her negligence, however, there are ways to take the matter out of bankruptcy to proceed only against the insurance policy.

In Chapter 13, a creditor might receive some money in the bankruptcy, depending on how the Chapter 13 plan is written.

Yes. If you're a creditor and the defendant in your civil case files bankruptcy, in addition to what Mr. Cohen said, make sure you file a claim with the bankruptcy court. You never know for sure what will happen. Some bankruptcies get dismissed (for example look at some of the dummies here on LawGuru who try to represent themselves) in which case the creditor would have a green light to proceed.

If the defendant in a lawsuit files for bankruptcy, the automatic stay stops the lawsuit while the bankruptcy is pending. If the plaintiff still proceeds with the lawsuit in violation of the automatic stay, you can bring legal action in the bankruptcy court to seek fines and other appropriate remedies.

If the debtor successfully completes the bankruptcy and receives a discharge, the debtor can also take further legal action in the bankruptcy court if the creditor refuses to dismiss the lawsuit.