Legal Question in Bankruptcy in Virginia

Does Chapter 7 freeze lawsuit of salary OWED TO ME by my former employer

I had to file Chapter 7 bankruptcy. But about a month before I filed, my attorney re-filed a lawsuit against my

former employer. My former employer owes me over $100,000. The employer has now defaulted on the lawsuit, by

failing to answer the lawsuit. Their answer was due on October 21. I filed my Chapter 7 bankruptcy on October 18. It never dawned on me that they might default on their lawsuit or I would have waited.

Does the filing of my Chapter 7 on October 18 change the amount of time required for someone who OWES ME MONEY to file their answer in court? Will they get more time because of my Chapter 7? Does my Chapter 7 freeze the 21 days that they have to RESPOND to my lawsuit AGAINST THEM?

Should I cancel my Chapter 7 Petition in order to make sure I can get a default judgment against them in court? Would it help?


Asked on 10/26/04, 5:32 pm

1 Answer from Attorneys
Richard S. Stolker Uptown Law, LLC

Re: Does Chapter 7 freeze lawsuit of salary OWED TO ME by my former employer

Except to the extent that any proceeds of the lawsuit are exempt -- and listed as such on your bankruptcy Schedule C -- the proceeds of the lawsuit belong to the Chapter 7 trustee for the benefit of your creditors.

Please do not hesitate to contact me if I can be of further assistance.

Richard S. Stolker

Virginia Bar #29929

[email protected]

301-294-9500

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Answered on 10/27/04, 12:13 pm


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