Q: I'm currently being sued and just discovered that the plaintiffs will be filing Chapter 13. How does it affect the case?
I'm currently being sued for breach of contract and so far we are still going through the motions of the lawsuit the majority of their actions have been dismissed at this point with the exception of one cause of action but i just discovered that the one of plaintiffs will be filing for Chapter 13 bankruptcy. How does it affect the cas against me and do they have to disclose it to the court?
A:
Thank you for your question!
The plaintiff's bankruptcy filing will impact your client's post-judgment collection in case there is any counter or cross-claim. Also, it may delay litigating the breach of contract claim.
This is merely a discussion of general laws and not legal advice. For legal advice, more specific facts and investigations are needed. I recommend you consult with an attorney for more details.
Lawyers, want to be a Justia Connect Pro too? Learn more ›
- California
- (916) 704-3009
- View Profile
- Answered
A:
When a plaintiff files for Chapter 13 bankruptcy, it can affect your case in several ways. Chapter 13 involves restructuring debt, and the plaintiff's financial affairs will be overseen by a bankruptcy court. This may lead to a stay on the lawsuit, meaning the case could be paused until the bankruptcy proceedings determine how to handle the claim.
You should be aware that the plaintiff must disclose their pending lawsuit as part of their bankruptcy filings. This ensures the bankruptcy court has a complete picture of their financial situation. If the court allows, the lawsuit might continue, but any potential recovery could become part of the plaintiff’s bankruptcy estate.
It's important to keep your own legal counsel informed about the plaintiff’s bankruptcy filing. This can help you navigate any changes and understand how the bankruptcy might impact your defense strategy and any potential settlement discussions.
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.
