I may be facing a lawsuit and a potential judgment against me. I am in an all out business free-fall and am trying to figure out ways to deal with the potential fallout.
The bankruptcy laws are federal and supersede state law which means a bankruptcy can forgive a lawsuit and/or judgment in most cases. Bankruptcy does not forgive alimony, child support, student loans, drunk driving and willful misconduct. Chapter 13 is one type of bankruptcy. Often when a business fails bankruptcy is the solution.
Law Office of Michael J. Primus We are a debt relief agency and help people file for bankruptcy under the bankruptcy laws. We have offices in California only.
Remember, BK is more than checking boxes on forms you find online. Find/consult/hire a lawyer using the Avvo feature "Find a Lawyer". Make a list of 4-5 having many 5 star reviews from satisfied clients. If you don't get a prompt call back from one, go on to the next on your list. Some of us offer a free consultation by phone or in person. Take us up on it.
Because the bankruptcy process can be handled entirely by phone, email and fax, there is no need to personally visit the lawyer’s office unless you want to. Don’t be limited by the location of the BK lawyers you select.
If my answer is "BEST ANSWER" and/or "HELPFUL" please acknowledge and mark it so. I appreciate your comments and feedback. I have been practicing law since 1976 serving thousands of clients with successful legal experience with cases like yours. My response is often general in nature because all facts are unknown to me. Specific answers require knowledge of all the relevant facts of your case. Follow up questions are invited. You are not my client and I am not your attorney. This advice is given in the spirit of the AVVO platform and is based on general legal principles. You become a client when you enter into a formal retainer agreement with me.
Claims are debts and debts are claims. Bankruptcy can address "claims", while civil lawsuits are the means by which disputed claims are liquidated to undisputed claims. But whether disputed and unliquidated, or undisputed and liquidated, bankruptcy can discharge a claim so that it need no be paid.
If you are facing a lawsuit and cannot pay the disputed claim, it may serve you better to look into bankruptcy now, rather than later. The time, energy and money invested in a lawsuit that ultimately leads to a judgment against you can be better invested in a bankruptcy case to discharge the same claim. Plus, from the moment a bankruptcy case is filed, the resulting automatic stay stops court cases from proceeding any further, stemming the costs and attorney's fees of defending a civil lawsuit.
Before the situation progresses, consult a bankruptcy attorney.
Yes but how depends what the lawsuit is about. Also whether C13 or C7 is appropriate for your situation is something you can find out in a consultation, which is highly recommended so that you can best protect your rights and position yourself appropriately.
You should not rely on answers to questions as legal advice. Answering...
The one issue that stands out is that you are in a "Business free fall". If you incorporated, your business is a separate entity from you. There is a question of ownership and whether you guaranteed loans and whatnot, but we cannot tell from your question. Please be proactive. Get yourself a free consultation with a well reviewed attorney. You can use AVVO's Find an Attorney button or check out Bankruptcy Attorneys on YELP. Whatever you do, please get direction now from counsel!
I would appreciate it if you marked my answer as Helpful or Best Answer, if you believe it is true. Thank you! Also, please understand that I am not your lawyer and you are not my client, and the words that I write are not legal advice, as if given to a client of mine. You should not rely on my comments as though they are legal advice! Also, it is very important that you understand that my answer necessarily assumes certain things that may not be true. You should seek competent, local counsel to tell your full story so that you may obtain accurate, expert legal advice. I cannot be certain that my answer is correct, and neither should you, based on the limited information you have provided. I ask many questions of my clients before I render a final legal opinion. You should seek competent counsel to help you right away!
There is nothing holding you back from getting access to legal help. Most BK lawyers will give you a free consultation. Go ahead and take full advantage of it. I hope you get quickly up to speed and have a good outcome.
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