Legal Question in Bankruptcy in Texas

Re: bankruptcy and pending lawsuits

If it is a lawsuit for money damages, or most other types of lawsuits, the bankruptcy filing stays the lawsuit. You cannot proceed outside of the bankruptcy to try to get a judgment or collect. If there is insurance, you can file a motion in the bankruptcy court to permit you to litigate in non-bankruptcy court to the extent of the insurance coverage. Otherwise, you are likely limited to filing a proof of claim in the bankruptcy court and litigating it there if it is contested. Based on the allowed amount of your claim, you will then get whatever percentage distribution is made to general unsecured creditors.