Just served a lawsuit for constuctive fraud with about 29 others. Should I go BK before I answer?

Filing for BK will stay (temporarily stop) the lawsuit for everyone because no one can pursue any claim against you while you assert your rights to deal with your debt and seek protection under the BK laws, so you woudn't have to answer once you file, you'd only have to give the judge notice of your filing.

But the decision to do a BK filing has far reaching significance, so you should consult a qualfied BK lawyer about all your assets and liabilities and how they'd be treated under the new BK laws before you decide what to do.

Disclaimer: Please note that this answer does not constitute legal advice, and should not be relied on, since each state has different laws, each situation is fact specific, and it is impossible to evaluate a legal problem without a comprehensive consultation and review of all the facts and documents at issue. This answer does not create an attorney-client relationship.

You could do that but it doesn't guarantee that the debt will be eliminated. The creditor could file an adversary proceeding attempting to make the debt non-dischargeable despite the bankruptcy based on their fraud cause of action.

LEGAL DISCLAIMER
Mr. Larkin is licensed to practice law in CA and is located in San Diego. His response here does not constitute legal advice and does not create an attorney/ client relationship. The response is in the form of legal education and is intended to provide general information about the matter in question. Many times the questioner may leave out details which would make the reply unsuitable. Mr. Larkin strongly advises the questioner to confer with an attorney in their own state to acquire more information about the specifics of their case.

Filing bankruptcy in your case may not be helpful. If it is a fraud based claim, they could bring an adversary complaint in the bankruptcy to object to discharge. That could be as costly if not more costly as defending in state court. I'd recommend consulting with a local attorney about your chances in defending this fraud case before even contemplating bankruptcy. If you have a good chance of winning, it wouldn't be worth it to file bankruptcy over this one debt.