Legal Question in Bankruptcy in Tennessee

injury lawsuit

I own a Curves (a franchise women's center) and I had a personal injury lawsuit filed against my LLC dba as Curves in May of 2005. She is claiming the injury in June of 2004. We do not believe she was hurt in our facility as we did not hear about it for a year. She is suing me for $300,000. She has also filed a lawsuit against Curves International and the makers of our exercise equipment. My attorney thought we could have it dismissed because we have signed waivers by her however as part of the Curves sales policy we are taught to tell every member that Curves is ''fast, fun and SAFE''. And since we told her she would be safe our attorney did not think we could win a dismissal. My trial date is set for Feb 20, 2007. I cannot afford to pay an attorney another dime and they are going to remove themselves as my attorneys. I am in the process of selling the business and will close on it on January 4. I am selling it for a total of $125,000 - at it's highest value. I owe on loans and tax liens and will not have hardly any money left when it is said and done. Can I close my LLC and file bankruptcy to end the lawsuit? Or what is your suggestion? I can't pay an attorney and I don't know how to represent myself and I have no money.


Asked on 12/27/06, 4:38 pm

2 Answers from Attorneys
James R. Becker, Jr. Becker Law Firm

Re: injury lawsuit

You can file for bankruptcy protection, but this will not end the lawsuit, it will only stay the proceeding and possibly provide a means for determining the value of the claim.

I understand about not having the money to hire an attorney, but this is a situation where you need to sit down with an attorney to go over all of what your options are. Your options will vary based upon the status of the lawsuit, the complaint that has been filed, the status of any sort of settlement negotiations and any sort of contracts that you have signed.

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Answered on 12/28/06, 1:15 pm
LAURA TEK LAW OFFICE OF LAURA TEK

Re: injury lawsuit

Filing bankruptcy will not end the lawsuit, HOWEVER, it will switch the jurisdiction of it from the state court to the bankruptcy court and the attorneys for the Plaintiff would be forced to try their lawsuit in bankrupcy court; which would be a lot harder for them to do. I would advise that you file bankruptcy IMMEDIATELY BEFORE the trial STARTS. Not after. If I were you, I would run not walk to a good bankruptcy attorney and file either a Chapter 7 or 11. If you have some assets, they would liquidate those for their fees. NEVER EVER EVER represent yourself in this kind of a case. You could lose everything if you do that. Get a good bankruptcy attorney and file Before the trial.

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Answered on 12/28/06, 3:32 pm


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