Q: Wrongful termination lawsuit while employee is in process of bankruptcy?
Are there any suggestions on legal help for a person who has a very solid wrongful termination case, but is in the process of chapter 7 bankruptcy at the time of termination?
A: Not much if it is a total liquidation case. Depending on the circumstances, it may be non-dischargeable in bankruptcy.
A: The issue here as presented is that this can be considered a claim by the BK Trustee. Some or all of any settlement may be taken by the BK court. All attorney fees have to be approved by the BK trustee including any part of a possible settlement. Talk to your BK trustee and get something in writing to release the claim from the BK and your likelihood of getting an attorney to assist you should increase greatly. I wish you the best.
A: If the claim arose after the bankruptcy was filed, it is not property of the bankruptcy estate. I recommend that the employee see an attorney about the employment-law case, and that if there is any claim the attorney should consider notifying the bankruptcy trustee if there is any doubt as to the conclusion that the claim is not property of the estate.
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