Trustee takes over pending lawsuit

[startover05]

I had a theft of everything I own in 2003. Allstate refused to pay so this year we started a lawsuit for $50,000. I had to file BK a few days ago and one of the reasons is I just don't have any fight left in me. I want to drop the case to really start over (we haven't even done depositions yet) but can I do that when I just filed bankruptcy?

Doesn't the trustee take over the lawsuit? Does my BK case stay open till the lawsuit is resolved?

[Minnymouth]

I don't know that the Trustee "takes over" the pending lawsuit, but I'm sure that he would hold your case open until it is settled. This is future assets he could use to pay creditors with....
The trustee might even pursue the lawsuit if beneficial to the creditors.

You may be discharged from all your debts, but the trustee may leave the case open to settle the suit with the insurance company.

Don't let it all get you down..... times will be better, it just takes time to re-coup from it all....

Minny

[HHM]

Yes, the trustee can take over the lawsuit because its an asset of the bankruptcy estate. That does not mean you won't be involved in the lawsuit, but much of the decision making will get done by the trustee with regards to the lawsuit. Its not common for the trustee to take over cases (because its a hassle) but it happens.

No, the pending lawsuit will not prevent you from getting a discharge on time.