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certificate of pending litigation

I am trying to payoff my creditors by selling my home however,a certificate of pending litigation is stopping me from selling the home and paying off my creditors. The person who put the certificate on the home is entitled to 20,000 but won,t settle until he is paid 54,000. I was not aware of the certificate until I sold the home and know the sale of the house is in jeopardy unless the certificate is paid off. Today I learned if Ido not go thru with the sale the people and the real estate company will sue me. If I file for bankruptcy will I be protected from the lawsuits?

One Response to “certificate of pending litigation”

Barton Goth GCO Bankruptcy Trustees said...

This will really depend on the nature of the lawsuit that is launched. Technically the only lawsuits that can survive bankruptcy would relate to fraud, misrepresentation, any criminal or quasi criminal act, or civil suits for intentional bodily harm, sexual assult or wrongful death. If the pending litigation doesn’t’ fall into one of these categories then it can be cleared by filing for bankruptcy.

The other thought that comes into mind is that by filing bankruptcy may release the the registration against title. To determine this you will have to bring all information you have relating to this action to a local trustee and have them review it prior to providing an opinion. Essentially this will depend on what types of documents you have signed and the specific nature of the certificate registered.