Bankruptcy

Effect on Pending Lawsuits

If you are a Defendant in a lawsuit, a Chapter 7 or a Chapter 13 Bankruptcy may help you. As part of a Chapter 7 or a Chapter 13 Bankruptcy the court will issue an injunction preventing the lawsuits from proceeding. Thereafter, the matter described in the lawsuits might be dismissed or discharged or the creditor might bring that lawsuit within the bankruptcy proceeding.

If, on the other hand, you are a plaintiff in a lawsuit, your claim against the Defendants may become an asset for the bankruptcy trustee. In a Chapter 7 case, the trustee might substitute in your place as the plaintiff in the lawsuit. In a Chapter 13 case you may be allowed to continue to prosecute your lawsuit subject of course to the supervision of the trustee and the court.

This is a very complex area of law which requires the expert attention of one of our experienced bankruptcy attorneys. The information contained in this message is general and should not substitute for the advice and counsel of one of our experienced bankruptcy attorneys.

Contact our office to speak with an experienced Arizona bankruptcy lawyer at Platt & Westby.