Can I file bankruptcy and include a debt from a company that has filed to take me to court?

I live in one stae and am being sued in another, where I used to live and where my business was located that accrued this debt. I am being taken to civil small claims court for $1400, this includes court costs. It goes to pre-trial in 2 weeks. I was thinking about filing bankruptcy before, and now that I’m being sued I really want to file. Can I include this lawsuit in my bankruptcy or it too late because they have already filed with the court to sue me?

Asked on August 1, 2012 under Bankruptcy Law, Iowa

Answers:

Terence Fenelon / Law Offices of Terence Fenelon

Answered 8 years ago | Contributor

You can file for relief under the bankruptcy code regardless of the status of the collection of the debt.  Upon filing, the Bk Court will issue the automatic stay which will stop the civil proceeding.  Assuming that the bankruptcy is granted, the case in the civil court would have to be dismissed and you would be discharged of liability.


IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.