Legal Question in Bankruptcy in Indiana
Chapter 11 effects on harrassment lawsuit
I filed a harrassment lawsuit against my old employer. They then filed Chapter 11 bankruptcy. We have not yet been to court. Being that I have not received judgement, will my case be included in their Chapter 11 filing? How will the Chapter 11 bankruptcy effect my case if I receive judgement before the Chapter 11 is discharged, and will the discharge effect my case if I have not yet received judgement? Also, if another company bids on, and purchases, my ex-employer, will that make them liable for the amount of my judgement (assuming I am awarded a monetary amount), or will my judgement die with the old company?
1 Answer from Attorneys
Re: Chapter 11 effects on harrassment lawsuit
You cannot proceed in your court case now that the company filed BK-you are stayed from taking any further action in state court. The case will be scheduled in the ch 11 but it is doubtful you will receive much if anything out of the bk, even if the company is sold. The purchaser will buy the assets free and clear of liens or claims and wont assume your liabilty. Your best bet may be that the employer was insured and may have coverage for your claim-consult your attorney asap
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