Case Dismissal & Lawsuit

[down and out]

I am being sued in a civil case from selling my business. I am considering going chapter 7. My question is this: if the plaintiff decides to fight me in bankruptcy court, can I withdraw my bankruptcy? Or can he force me into bankruptcy court regardless? If I have to fight in court, I'd rather only do it once!

[BKOnce]

Regardless the consequences, whichever path can you think/choose to SAVE you the most $$ after all ?

[lrprn]

...if the plaintiff decides to fight me in bankruptcy court, can I withdraw my bankruptcy?

If you do file Ch 7 bankruptcy, you can request that the bankruptcy be dismissed, but it will remain on your credit report as a huge negative for 10 years. And a dismissed case is an even bigger negative. Don't file unless you intend to follow through to discharge and closing.

Or can he force me into bankruptcy court regardless?

There is such a thing as involuntary bankruptcy where a creditor forces you into bankruptcy, but it's risky for them. See http://bankruptcy.lawyers.com/Facing...ankruptcy.html for the details.

[HHM]

One thing you need to keep in mind with Chapter 7 BK's, the Trustee's almost always fight dismissal's. Voluntary dismissal's of chapter 7's are uncommon and rarely granted. So, as for your mind set, you need to think of it this way: once you file a chapter 7, you won't be able to back out of it if things don't go as planned.

As for the business lawsuit, yes, the case can generally be moved into BK court...but that depends on the issues involved. If the legal issues in the case are purely a matter of state law (which is likely the case), the BK court will probably allow the case to continue in State Court.

Of course, whether the lawsuit would even continue if you file chapter 7 is another issue but you would need to tell us more about the lawsuit.

[down and out]

The lawsuit is in Florida where I previously lived and had a business. I've been living in Texas since the sale and lawsuit (8 years ago). The suit is going to trial in the next few months for civil theft/fraud.

I'll be filing in Texas so the plaintiff would have to come here to fight my bankruptcy? Or would it simply remain in the Florida court?

[JRScott]

The lawsuit is in Florida where I previously lived and had a business. I've been living in Texas since the sale and lawsuit (8 years ago). The suit is going to trial in the next few months for civil theft/fraud.

I'll be filing in Texas so the plaintiff would have to come here to fight my bankruptcy? Or would it simply remain in the Florida court?

BK filing is in the federal court system, not state.

Your situation seems pretty complicated, I'd talk to a lawyer. Even if you file BK you'd still be required to appear in state court, though you could ask for continuance based on the fact that you are filing for bankruptcy. Anyway I think you really should go do a few sessions with BK lawyers in your area. See what they think of the situation.

[down and out]

If I have to go to bankruptcy court, will I have to produce more than the two years worth of records?

[JRScott]

It depends. To fill out the paperwork you need 2 years of tax reports plus current year.

They can ask and have in some cases for more documentation. I'm not sure how far they can go back but I think at least 3 to 5 years if the Trustee decides its warranted.

[HHM]

It's not likely the case would be moved...about the only thing the Plaintiff would have to do is file a Motion to Lift Stay in the BK court to allow the case to continue. And since the underlying claims (as you say, are for theft and fraud), if the claims were successful, those claims would not be discharged in BK. Right now the Plaintiff has an unliquidated claim, i.e. a claim against, but the amount owed is unknown.

Are you the only defendant? If the case is actually going to trial, how have you been defending it, do you have a lawyer in Florida?

[down and out]

The plaintiff is suing myself and Sub-S corporation. And yes, I do have an attorney - but not one versed in bankruptcy.

Are you saying that he could file a motion in Florida to lift the stay even though I'm filing BK in Texas?

What grounds do you think he could win the motion on?