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Ellen, Attorney
Category: Bankruptcy Law
Satisfied Customers: 36714
Experience:  Bankruptcy Lawyer. Experienced.
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What happens to an existing non compete clause in an employment

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What happens to an existing non compete clause in an employment agreement with a prior employer if I declare Chapter 7 bankruptcy?

Thank you for your question. I am happy to assist you.

I am a lawyer with 25 years experience. While I am permitted to provide you with legal information, I am prohibited by and various state bar associations from giving legal advice, representing you or entering into an attorney-client relationship through this open and nonconfidential forum.

Typically the noncompete would no longer be enforceable. The obligation would typically be discharged in Chapter 7 bankruptcy

Best wishes for a Happy and Healthy New Year!
Customer: replied 5 years ago.
Can you point me to any case law regarding this topic? I have tried doing a little research online but I cannot find anything other than some articles written in various states.

To give you a little more background? I left my employment with a consulting firm in September and started my own business. Now my ex employer has filed a lawsuit against me for a breach of non compete. Before I retain an attorney to respond for the suit, I want to see if by filing for a Chapter 7 bankruptcy, I could get the lawsuit dismissed/discharged. My income level in the last 6 months allows me to file a Chapter 7.
I am working on it
Customer: replied 5 years ago.
What kind of a timeline can you give me for your response?
Here is a middle District of Florida case and it also references a case in Minnesota:

Best wishes for a Happy and Healthy New Year!
Ellen and 3 other Bankruptcy Law Specialists are ready to help you
Customer: replied 5 years ago.
Thank you!
Have a Happy New Year

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