August 10th, 2011 by Questions
I am currently being counter-sued and am finding it quite difficult to come up with any sort of money to keep this legal process going. I am in a lot of debt as well.
If I file for bankruptcy will this eliminate my claim and the counter-claim? I don’t really want to give this lawsuit up as I feel I will win in the end but by the looks of it, it may take several years and cost a significant amount of money to fund, which I simply do not have at this point.
Posted from: Ontario
One Response to “Being Sued”
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August 10, 2011 at 12:14 pm, Barton Goth - Goth & Company Inc. -Trustee in Bankruptcy said:
There are two parts of this that become important.
First the person suing you. Most law suits are extinguished when you file a bankruptcy. Meaning, unless there are special circumstances (i.e.fraud, misappropriation of funds, intentional bodily harm, wrongful death or sexual assault) then the bankruptcy stops any legal action against you.
The second part of this you have already alluded to, if you do file a bankruptcy you will lose the right to take or continue any legal action. This is a right that will vest with the trustee.
The important thing is to make sure that you meet with a local trustee
, have them review the nature of the lawsuit and then they can advise you if this is a lawsuit that you can be protected from by filing a bankruptcy.