What is the criteria to file bankruptcy to avoid creditor
Here I am using an example. I try to see from this person's position, how could he use bankruptcy law to avoid court judgement collection.
Mr. F sold a couple of his business assets in the last a couple of years.
The total proceeds he received from those sale were at least 1.5 millions.
He is currently owning another one or two businesses together with the real-estates
where the businesses are operating. He also has his own residential house with mortgage on it. His credit history has been at least good to excellent. He also have a couple of business bank account under the name of companies he operates.
A business dispute lawsuit was filed against him in October of last year for breach of business contract
and fraud. He has been avoiding court services and now is facing default judgement.
The question: if he files bankruptcy protection
after the above lawsuit date, will the bankruptcy court
be able to find the pending lawsuit? Here I try to understand the entire process and purpose of bankruptcy protection. In his example, is he likely to be granted bankruptcy provided he does not have other significant debt? How his assets were examined if he try to file for personal bankruptcy
protection? And if he violated law, can the bankruptcy protection become void?