Judgement – being sued
How does going bankrupt affect my situation if I am being sued by another person. Do I still have to pay the amount that I am being sued for. I have received a judgment paper from court for the amount I am being sued for and it is alot of money. Will applying for bankrupty help me in this matter?
There is a small category of debts that you cannot be released from by bankruptcy. They include, fraud, misappropriation, embezzlement, any fines that are criminal or quasi criminal in nature, maintenance or alimony, certain civil claims (intentional bodily harm, sexual assault, or wrongful death), and there are a few rules around when student loans can and cannot be cleared.
The best thing for you to do is sit down with a local trustee, review the details of this lawsuit and they will be able to advise you whether a bankruptcy will help to resolve things or not.