How is pending court case affected by bankruptcy?
March 30th, 2007 by Questions
My ex-husband and I still run the business together that we built while married. We have a large debtload that we are trying to pay off and have considered bankruptcy, but we are making enough money to pay off the debts eventually and would rather do that. However, there is a court case pending (we are in a group of four defendants) for which mediation is scheduled next month. We have informed the claimant’s counsel that there is nothing to recover from us. If we are found liable there is no way we can pay and a judgement against us could be the final push into bankruptcy. If we file either a creditor’s proposal or bankruptcy now, how does that affect a pending legal case? If we wait to see what the judgement is, and decided to file either a creditor’s proposal or bankruptcy then, how would that affect the judgement?