Question regarding lawsuits

[Lajazz947]

I have a lawsuit pending against someone who defrauded me of approximately $270,000.

He filed a cross complaint which I am prepared to fight.

It seems logical that if I file BK his lawsuit is stayed and dismissed.

Am I allowed to proceed against the other party with my initial lawsuit while having his cross complaint discharged?

Thanks for any help.

[AngelinaCat]

I have a lawsuit pending against someone who defrauded me of approximately $270,000.

He filed a cross complaint which I am prepared to fight.

It seems logical that if I file BK his lawsuit is stayed and dismissed.

Am I allowed to proceed against the other party with my initial lawsuit while having his cross complaint discharged?

Thanks for any help.

Hi Lajazz: I feel for you, but the problem is that once you file for BK, you and your opponent's lawsuits are both tolled--that is put on hold until after the BK. His action could be dissmissed. But he has the right to file an Adversarial Proceedure against your BK to keep his impending suit of you from being dismissed/discharged along with your other debts.

And it gets muddy because neither of you have a Judgment yet to dismiss.

I am not sure about your suit. It may well be dismissed with the discharge of your BK as well. But, if the Statute of Limitations is not up on your action when you are discharged, you may be able to reinstate it.

You really need to talk to a GOOD BK attorney about all of the ramifications here. 'Hub and I are wandering in these murky waters ourselves.....

Also, at your 341, you will be asked if you have any suits against someone, and/or does anyone owe you any money? Speak up and say so.

Good luck.

[keepmine]

The lawsuit you filed will become the property of the bk estate and anything you win will go to the trustee for the benefit of your creditors unless, it can somehow be exempted.
Does the lawyer handling your suit know about your bk?

[HHM]

The claim you have against this person is now property of your BK estate. The trustee has the choice to step in and continue the lawsuit, or abandon it. But, at this point, unless there is an exemption, any judgment you get against this person is part of the BK estate.

[AngelinaCatHub]

Sometimes that may work out. At least Justice could be served if you prevail as well as creditors may appreciate you more. How much are you discharging, more or less that 270K? If less, the residual should become yours. That is, if you can collect on the Judgment. 'Hub

[Lajazz947]

Thanks for all the replies.

The lawsuit is for pension money so if I win it will be exempt from the BK estate but that may be a LONG time after I file.

Yes, my BK attorney knows about the suit and the other one knows about my BK.

I am waiting to hear from my attorney as this question just came up.

[AngelinaCat]

Hi Lajazz: just because the suit is for pension money doesn't mean it will happen. I have read here in other threads that although pension money was paid into bank accounts, once that happened, then the money isn't marked "pension" anymore, and it has been nabbed.

Ask that question.

I know you a very detailed oriented person, so I put that into your 'inbox', as it were, to process.

Good luck, and good night.

[Lajazz947]

Thanks, it wasa private placement from a pension plan so it HAs to be replaced into the pension plan so i hope that this means that it is exempt.