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UNIQUE Case: Likelihood of AP

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    UNIQUE Case: Likelihood of AP

    I had a civil lawsuit against my business partner and I. Due to the excessive cost of defending the case ($100K), we decided it was in our best interest to file for bankruptcy. We spent around $20K to this point and still have a lot of discover, depositions and then the trial. Negotiations are too far apart and the $8k spent on mediation was wasted seeing as we never got close to closing the gap. I think they were being greedy and had intentions of not negotiating and wasting money and time. The civil case is really a 50/50 and with the preponderance of evidence going both ways. I think we have a lot of truth and evidence, but the other side as a couple of pieces that could go against us. We felt it was just to risky to put into the hands of a jury or judge. The plaintiff in the district court wants $800k as a settlement. Again, this is too much and would drive our business into the ground. We filed bankruptcy about 30 days ago and had our 341 meeting. We need a few additional pieces of paperwork and some additional information to satisfy the trustee from how I understand it. We are looking to hire an attorney at this point to make sure everything is correct and for precautionary purposes. While this occurred, there was a stay on the other case and the judge has decided to dismiss it all together without prejudiced. I know they can file an AP and would likely try for dischargeability. Without a judgement or $ attached, I personally cannot see how they have a claim. So my question is what are the chances of an AP?

    -I know there are procedural requirements with a complaint etc. and time limits.
    -The other company has about $70K accumulated in prosecuting the other case and various cost associated with it.
    -The companies are in two different states, so my understanding is they would have to retain a lawyer and fight against it in our state.
    -My initial consultation suggested it could cost them another $20K for an AP.

    Any thoughts would be greatly appreciated. I know it is a complex and unique case.

    #2
    . . .We filed bankruptcy about 30 days ago and had our 341 meeting. . . what are the chances of an AP?
    Unfortunately there is no way for us, as "strangers to the issues", to guess at the answer to your question. Quite frankly, you are the one best suited for that since you know the parties involved and the issues being raised.

    You will just have to hold your breath for the 60 days to run. If a Motion to Extend the 523/727 deadline or the actual Complaint is not filed then you are done with the Plaintiff.

    Des.

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