Legal Question in Bankruptcy in Wisconsin
bankruptcy
Can a person file bankruptcy on a lawsuit 3 weeks before judgement on the lawsuit? And is the person liable for the judgement since bankruptcy was filed?
3 Answers from Attorneys
Re: bankruptcy
Depending on the underlying reason for the lawsuit, the answer could be yes or no. You need to give more information or call an attorney. Dennis
Re: bankruptcy
Most legal action is stopped dead in it's tracks by filing a bankuptcy. There are exceptions, and you didn't say what the claim is about.
Generally, a bankruptcy discharge would apply to most judgments. Again, you don't say what it's for so I can't say for sure.
For example, if it's for alimony or child support, forget it. Taxes, same answer. If you injured someone while you were drunk, probably not. Fraud claim, probably SOL. But for the majority of matters, the bankruptcy is like magic.
This is for general information purposes and does not create an attorney-client relationship. Check out my site at http://www.mn-bankruptcy.com.
Bankruptcy Stopping Lawsuits--Sometimes Requires Extra Effort
Bankruptcy filing should stop lawsuits, but only if you protect yourself by making sure that the creditor honors the filing and stops his lawsuit. If you do not push this issue with the creditor, the creditor sometimes does not get the message and continues to collect. A judgment obtained under this scenario, even if illegal, can still be enforced until it is reopened and removed, and the judgment debtor can still be held liable. Very little happens automatically when it comes to bankruptcy effecting litigation in other courts—as with all legal matters, you must protect your rights or you can still lose. Do not expect the adverse party to protect your rights for you. Creditors who improperly proceed can be held liable for your litigation expenses in undoing this sort of damage (including actual reasonable attorney fees). In egregious situations, the debtor who was wronged can also be awarded punitive damages against the creditor in addition to expenses.