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cfortunato, Attorney
Category: Bankruptcy Law
Satisfied Customers: 8023
Experience:  Bankruptcy professor.
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I am involved as a defendant/cross-complainant in a civil action

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I am involved as a defendant/cross-complainant in a civil action in California. The case is not going well for me and other defendants. It is not a tort or fraud case. We are absolutely right on the law but the judge is not the brightest bulb in the box. We could win at appeal but the cost is prohibitive. The judge has given an interlocutory order but the trial is ongoing. If I file the Chapter 7 bankruptcy that I plan to file, what will happen to the state court action?
Submitted: 4 years ago.
Category: Bankruptcy Law
Expert:  cfortunato replied 4 years ago.

Hi JACustomer,

If you lose, will this judgment be dischargable in a Bankruptcy? (If you are not sure, what is the lawsuit for?)

Customer: replied 4 years ago.
Believe it or not, I was a service provider for a church that used my services. I have a verbal contract with them. The organization is a religious Corporation. I was hired by one faction that was in power at the time. There are now three factions suing each other for misappropriation of funds. The three factions are suing each other for control of the church. I am in the middle with a creditor's cross-claim. I was named in the suit by one side but there are no specific causes of action against me. The recent interlocutory order did not affect me or even name me. I think this judgment, if rendered against me would be dischargeable in bankruptcy because it is not a tort or fraud.
Expert:  cfortunato replied 4 years ago.

If the judgment would be dischargable (and it would be if there is no fraud or malicious behavior involved), then filing a Bankruptcy while the action is in progress would suspend the proceeding - at least regarding you - so that no judgment could be issued against you.

Once your Bankruptcy case is discharged, the claim against you would be dismissed.


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Thank you.

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