April 5th, 2006 by Questions
If there is already a suit against me, will filing for bankruptcy make that suit nul and void?
April 05, 2006 at 10:29 am, Barton Goth, GCO Inc. Bankruptcy Trustees said:
Generally speaking yes, although this depends on the type of lawsuit you are facing.For instance, if the lawsuit is essentially a creditor who his attempting to obtain a judgement and you havenâ€™t acted in a fraudulent manner or misrepresented yourself in any way, then a bankruptcy or a consumer proposal will erase the judgement. If instead of a judgement your creditor applies for a Restition Order then a there is nothing in the Bankruptcy and Insolvency Act that will help. Restitution Orders are used when a person has damaged/destroyed another person’s property (for instance you burn down your neighbors garage) and the act can only really impact lawsuits that are being used to not used to reclaim bad debts.
For more information I suggest you contact a licensed trustee. Make sure that when you meet with a the trustee you bring all the documents you have that relate to the lawsuit in question, this way he will be better able to provide you the necessary direction.
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