Legal Question in Bankruptcy in Pennsylvania

How should I proceed?

I have amassed about $17,000 in consumer debt and $65,000 in student loans. On my doorstep this morning was a packet of papers basically stating that I am being sued. This stems from a car accident 2 years ago where my insurance had lapsed and a motorcycle hit me, there was no alcohol involved. Anyway, the lawsuit is for like $25,000 and I was most likely going to file for bankruptcy within the next few months anyway. I know the shool loan is not dischargeable, but is this lawsuit dischargeable? The court date for this suit is in July. Now, if I file for bankruptcy before then, can this be discharged or not.

Thank you in advance.


Asked on 10/23/03, 11:57 am

4 Answers from Attorneys
Mark Jakubik Jakubik Law Firm

Re: How should I proceed?

a bankruptcy filing might be sufficient to stay the lawsuit, but will not allow you to avoid potential tort liability.

Read more
Answered on 10/23/03, 12:08 pm

Re: How should I proceed?

You can include the amount of the tort claim (at this point it is disputed and unliquidated, but you still can list the amount claimed) in a bankruptcy petition. Filing bankruptcy causes an immediate stay of any collection activity against you, including the motor vehicle lawsuit. The consumer debt and tort claim are dischargeable in bankruptcy; you are correct that student loans are not.

Please feel free to contact me if you want to retain an attorney for a bankruptcy filing.

Read more
Answered on 10/23/03, 1:22 pm
Matthew Nahrgang Nahrgang & Associates, P.C.

Re: How should I proceed?

Although many counties have a trial or arbitration date assigned upon filing, if you fail to respond within 20 days of service, a default letter will be sent. That will afford you another 10 days. If you fail to respond by then, a default judgment will be entered and the only issue left will be the amount of damages.

Yes, you can file a bankruptcy at any time and the debt will likely be discharged. The only exception that might apply to this is willful and malicious injury. The plaintiff would have to file something in your bankruptcy case alleging you did this intentionally. That is not likely.

I suggest you speak with an attorney as soon as possible to assure you protect yourself. Please feel free to call or E-mail me on a free initial basis as I practice in Chester, Montgomery, Delaware, Bucks, Berks, Philadelphia, Lehigh, Lancaster and Lackawanna counties.

Read more
Answered on 10/23/03, 3:40 pm
Andrew Nichols Law Office of Andrew B. Nichols

Re: How should I proceed?

YOU SHOULD DEFINITELY FILE FOR BANKRUPTCY RELIEF. Please read my firm philosophy. Everyone deserves a chance to start over fresh. The automobile lawsuit can be listed in the bankruptcy and is dischargeable. Also by filing bankruptcy this lawsuit will never be heard by the state court because the federal bankruptcy court will cause a cease and desist (bankruptcy stay) to take place. Please feel free to call me to discuss your situation in more detail. ph. (800) 303-0720

Read more
Answered on 10/24/03, 8:01 am


Related Questions & Answers

More Bankruptcy Law questions and answers in Pennsylvania