What if a Lawsuit was Filed Before the Bankruptcy Case Was Filed?
A Debtor and a Creditor are Often Involved in Lawsuits before a Bankruptcy Case is Filed – Generally, a lawsuit commenced before the bankruptcy case was filed must stop unless the bankruptcy judge gives permission for it to continue. In other situations the lawsuit is replaced by a creditor filing a “proof of claim” in the bankruptcy case, or the lawsuit may be removed from the non-bankruptcy court to the bankruptcy court. If a debtor is a plaintiff in a lawsuit, the trustee and court must immediately be notified to determine if that lawsuit can continue or must be brought into the bankruptcy court. In chapter 7 and 11 bankruptcy cases in which a trustee is appointed, the trustee generally becomes the new plaintiff if the debtor was the plaintiff at the time the bankruptcy case was filed.
Related Questions
- I filed a Chapter 7 Bankruptcy case within the last 8 years, but again or still have debt I need help with. Can I file a Chapter 13?
- Ive been sued for non-payment of a debt or mortgage. How can bankruptcy help me; isn it too late now that the lawsuits been filed?
- What will happen to my case if I filed bankruptcy in the past and failed to pay the filing fee?
