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TexLaw, Attorney
Category: Legal
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Experience:  Lead trial/International commercial attorney licensed 11 yrs
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Can a supplier prevent me from filing chapter 7 in the state

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Can a supplier prevent me from filing chapter 7 in the state of colorado claiming construction fraud?

Thank you for your question.

A party cannot prevent you from filing bankruptcy. However, there are certain situations in which a party in a separate lawsuit against you can ask for the "stay" caused by a bankruptcy to be lifted and allow them to continue their fraud case against you in the state court. This is primarily where they can show that the only reason you filed bankruptcy was to stop their lawsuit.

Please let me know if you have further questions.

Customer: replied 3 years ago.

Actually I have already filed and my court date is comming up very soon.

If the lawsuit is not a fraud case rather just a collection is this something that they can still pursue?

When you file a bankruptcy, all other cases against you are automatically "stayed". Meaning they do not continue until after the bankruptcy. A creditor can either wait until after the bankruptcy, or can file its claim in bankruptcy court against you, prove the claim, and then will have the amount adjusted by the bankruptcy court. So, in short, yes, but it will be in the bankruptcy court only.
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