FILL OUT THE FORM BELOW AND RECEIVE A NO-OBLIGATION CONSULTATION

"*" indicates required fields

Name*

Phone Number*

Email*

This field is hidden when viewing the form

What's the best time to contact you?*

Location*

What city do you live in?*

Total Unsecured Debt*

*Unsecured debt includes credit cards, lines of credit, bank overdrafts, payday loans, and unsecured personal loans (excluding student loans). It does not include mortgages and car loans.

This field is hidden when viewing the form

Source

How can we help you?

If you have unsecured debt of under $10,000 and live in the Province of Ontario filing bankruptcy may not be the best option for you. We suggest you contact the Office of the Super Intendent of Bankruptcy at 416-973-6441 to discuss your options, or you can visit their website here.

Agreement*

I understand that Bankruptcy-Canada.ca does not provide debt relief services directly and agree to securely share this information with a local Licensed Insolvency Trustee (LIT) for a free, confidential consultation.

Name

This field is for validation purposes and should be left unchanged.

Select Trustee By Province

Settlement recieved in a class action lawsuit

I invested about 175,000 dollars of BORROWED money in an investment which `guaranteed` a minimum 15% return. As should be expected the company went belly up about 9 months ago and me with a group of investors have been involved in litigation against the directors of this company. We anticipate a sizable settlement from the directors whom we presume would want to avoid jail time.

Meanwhile creditors are after me , most probably I will have to file bankruptcy in the next few months.

My question regards the timing of the bankruptcy. Am I obligated to continue with the legal proceedings after I declare bankruptcy? Will I be refused discharge until the litigation is over?

Posted from: Ontario

Share this post:

X (Twitter) Facebook LinkedIn Email

One Response to “Settlement recieved in a class action lawsuit”

Barton Goth GCO Bankruptcy Trustees said...

A bankruptcy won’t be extended due to this litigation, nor are you obligated to continue these proceedings after you file a bankruptcy. In fact, you will find that your interest in the action is considered an asset, and one that you loose as part of filing a bankruptcy. Therefore this litigation will vest in your trustee and they will make the decision whether to continue in this proceeding or to abandon it. Your only obligation is to disclose the presence of this proceeding to your trustee and provide all the necessary details.