Q: My Co. Is involved in a lawsuit with client. Trial is in April can I file chap 11 if I lose and avoid paying judgement
I am hoping the truth is on my side and I will win but it's never guaranteed. The amt sued would wipe out my co. And I wouldn't be able to pay without selling. Can I file chap 11 if I lose and judgement against me. Or do I file before trial to end the lawsuit. Please guide me since trial is set for this April. I dont want to have to sell my business. I employ over 35 people and have been in business over 35 yrs.
A: I urge you to talk with a bankruptcy attorney experienced with chapter 11 cases. Chapter 11 is a reorganization for the debtor filing, in this situation, your company. An must be done to determine whether the company can reorganize and repay creditors some amount of the debt that is owed. Filing chapter 11 after judgment will not end the requirement of the company to pay something to the creditor. Additionally, the cost of the chapter 11 may be prohibitive for the company. Thus, I again urge you to meet with an attorney to understand all of the issues and options.
A: I would talk to a competent Ch 11 practitioner. Probably should wait for trial result and be prepared to file 11 if you lose. You probably would only have to pay a percentage of the judgment. However, you really should have a Chapter 11 bankruptcy lawyer on your side.
Justia Ask a Lawyer is a forum for consumers to get answers to basic legal questions. Any information sent through Justia Ask a Lawyer is not secure and is done so on a non-confidential basis only.
The use of this website to ask questions or receive answers does not create an attorney–client relationship between you and Justia, or between you and any attorney who receives your information or responds to your questions, nor is it intended to create such a relationship. Additionally, no responses on this forum constitute legal advice, which must be tailored to the specific circumstances of each case. You should not act upon information provided in Justia Ask a Lawyer without seeking professional counsel from an attorney admitted or authorized to practice in your jurisdiction. Justia assumes no responsibility to any person who relies on information contained on or received through this site and disclaims all liability in respect to such information.
Justia cannot guarantee that the information on this website (including any legal information provided by an attorney through this service) is accurate, complete, or up-to-date. While we intend to make every attempt to keep the information on this site current, the owners of and contributors to this site make no claims, promises or guarantees about the accuracy, completeness or adequacy of the information contained in or linked to from this site.
