I was in a car accident in which I had no insurance. I am now being taken to civil court and being sued for $150,000. If I filed for bankruptcy, would it pull me out the civil lawsuit being pushed against me? I have already lost the criminal side to this case.
Generally, bankruptcy imposes an automatic stay on pending civil actions that have not yet reached judgment. This means the case is stopped or "stayed" exactly where it was on the day you filed your bankruptcy petition. Upon filing a petition for relief in bankruptcy, an automatic stay (11 U.S.C. §362 (a)) goes into effect that prohibits many civil enforcement actions, including non-judicial foreclosures.The automatic stay remains in effect until (a) the dismissal of the bankruptcy case, (b) the entry of discharge or (c) an order for relief from the Bankruptcy Court. The timing of these events is dependent upon the chapter under which bankruptcy relief is sought.
Yes. A bankruptcy petition immediately operates as an automatic stay, placing in abeyance various forms of creditor action against the debtor, including civil lawsuits. See 11 USC 362. Automatic stay provisions protect the debtor against various actions from the creditor, including:
1. beginning or continuing judicial proceedings against the debtor
2. actions to obtain debtor's property
3. actions to create, perfect or enforce a lien against a debtor's property
4. set-off of indebtedness owed to the debtor before commencement of the bankruptcy proceeding.
This response is for information purpose only and does not constitute a legal advice. This response does not create an attorney-client relationship.
There would be an automatic stay halting the litigation under section 362 of the U.S. Bankruptcy Code. In the long run, your liability would be discharged as long as the accident is a result of negligence.
However, one caution: section 523 of the U.S. Bankruptcy Code will not provide a discharge for this particular accident if the case is said to be "for death or personal injury caused by the debtor’s operation of a motor vehicle, vessel, or aircraft if such operation was unlawful because the debtor was intoxicated from using alcohol, a drug, or another substance."
Finally, bankruptcy filings must include full, truthful and complete disclosure of all income, assets and debt. So, a bankruptcy filing may or may not be the solution to the problem.
Sign up to receive a 3-part series of useful information and advice about personal injury law.
Our Rating is calculated using information the lawyer has included on their profile in addition to the information we collect from state bar associations and other organizations that license legal professionals. Attorneys who claim their profiles and provide Avvo with more information tend to have a higher rating than those who do not.What determines Avvo Rating?Experience & background
Years licensed, work experience, educationLegal community recognition
Peer endorsements, associations, awardsLegal thought leadership
Publications, speaking engagementsDiscipline