Question re: Judgements

[Lajazz947]

I have a pending lawsuit for a mechanic's lien that has yet to be settled.

I am confident that we will win this but i was talking to my Mech lien attorney and he suggested that we wait as long as possible and not settle due to the impending BK.

I have a call scheduled with my BK attorney tomorrow but I want to be prepared.

Question:

I know the logical answer but here's the question:

I file BK tomorrow.
ML is settled after I file BK
What happens to the lien?

Do I just fight the ML, let them get a judgement and THEN file BK and include the judgement in the BK thus wiping it out?

There will not be enough equity in the house to keep it secured so it will be an unsecured debt.

Thanks.

[AngelinaCat]

Is the ML against you? If I am reading it right and the ML is against you, you can go ahead and file. Even though the lawsuit has not been consummated and a judgment filed against you, if you file and are then discharged, that lawsuit will be wiped out. Now the creditor can always file an Adversrial Proceeding against you claiming that the Automatic Stay stopped the lawsuit and ask that he be allowed to continue. This is probably why your attorney wants to wait.

Good luck.