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Terry L.
Terry L., Attorney
Category: Bankruptcy Law
Satisfied Customers: 2815
Experience:  Better Business Bureau. 18yrs bankruptcy experience. Chicago Bar Assoc. American Bankruptcy Institute member.
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Does filing bankruptcy toll right to bring abandoned causes

Resolved Question:

Does filing bankruptcy toll right to bring abandoned causes (breach, fraud) in state court (New Mexico)?
Submitted: 7 years ago.
Category: Bankruptcy Law
Expert:  Terry L. replied 7 years ago.
Bankruptcy provides automatic stay protection for the debtor against creditors. Before the affected party can proceed, they would need to do 2 things. 1. File a motion to modify the automatic stay, so they can proceed on any insurance claims, or for 3rd party claims. 2. file an adversary to determine that the debt is non-dischargeable under the bankruptcy code 11 USC 523. Fraud is one reason a debt can be determined non-dischargeable, but it must be decided in bankruptcy court, called an adversary. This must be filed timely in the case, the notice you received will give deadlines. If it is determined non-dischargeable, then they can proceed in state court for remedies.
Customer: replied 7 years ago.
Terry...the trustee abandoned causes...did filing bankruptcy toll my right to bring causes in a state court suit?
Expert:  Terry L. replied 7 years ago.
No. Just because the trustee issued a no asset report, means there are no assets to be distributed to creditors. The debt will be discharged otherwise, so you must to file an adversary before the deadline to keep the claim alive, otherwise your debt would be discharged.
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