Q: Can I sue a person even if she files bankruptcy?
Can I sue a family member for not honoring two Promissory Notes and the terms of payment within them? Said family member threatened to file for bankruptcy if the family tried to get her to pay her obligations. Said family member is also trying to protect herself and her property under an LLC she formed. Bank of America is also investigating the same family member for committing fraud on a real estate loan document. Same family member is a licensed real estate agent living in Colorado. A lawsuit would be filed where her mother lives in Arizona.
A:
The protection of a corporation/LLC only protects the owner from the business' debts, not the business from the owner's debts.
If the Notes are secured, they I recommend you move quickly. Chances are if she is so brook, she may not have the funds for a bankruptcy. If she does file a bankruptcy, I suggest you hire an attorney and precede under for fraud under 11 USC 727. Though your claim may not be fraudulent, by proceeding in this manner you can have her whole case kicked out. Most bankruptcy attorneys do not handle dischargability suits.
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