Q: Someone is threatening to sue me for $45000. I have 120,000 equity in my house and no credit card balance.

A: Can you clarify your question? Based on what you are saying and the fact that your question is posted in the bankruptcy section, I have to conclude that you are asking if you should file for bankruptcy. Right now, you only have the threat of a lawsuit. There is no reason to rush to the bankruptcy court. However, even if the plaintiff wins the case, it does not look like bankruptcy would be a good option for you since you don't mention any personal (unsecured debt) and the equity in your house exceeds the allowable exemption, which means that you would not be able to keep your house in a chapter 7 bankruptcy. The trustee would want to sell your house to pay off your creditors and whatever is left after the sale would go back to you. While I doubt that chapter 13 would be a viable option for you, assessing your situation is not possible without all the detailed information. I would recommend you consult with an attorney about the possible $45,000 lawsuit and your options in the event that the plaintiff gets a judgment against you. The answers to your question will very much depend on the particular facts of your case as there is no law without facts and it is important that whoever answers your questions, knows all the relevant facts. You may want to consider becoming a member of Prepaid Legal services as they will provide you with consultations on an unlimited number of issues for as little s $16/month. I recommend it to all my clients so that they can ask questions about their day-to-day issues without having to incur hourly charges. I can help you get set up with a membership if you are interested. These days, people have legal questions just about every day and most people don't have the financial resources to get answers from qualified experts.