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Ellen, Attorney
Category: Bankruptcy Law
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Experience:  Bankruptcy Lawyer. Experienced.
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What happens to the lawsuit when a LLC franchisee files a lawsuit

Resolved Question:

What happens to the lawsuit when a LLC franchisee files a lawsuit against a LLC franchisor and then the LLC franchisee files for bankruptcy? The franchisee has filed fraud and earnings claims against the franchisor which has kept the lawsuit in the state of his franchise.
Submitted: 8 years ago.
Category: Bankruptcy Law
Expert:  Ellen replied 8 years ago.

The trustee in the franchisee's bankruptcy steps into the shoes of the franchisee. The trustee can choose to continue the lawsuit or not. The trustee will have all the rights of the franchisee.
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