How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Brent Blanchard Your Own Question
Brent Blanchard
Brent Blanchard, Bankruptcy Attorney
Category: Bankruptcy Law
Satisfied Customers: 1975
Experience:  Twelve years experience in all aspects of debtor & creditor BK.
Type Your Bankruptcy Law Question Here...
Brent Blanchard is online now
A new question is answered every 9 seconds

I was discharged from a chapter 7 in February. I am still

Resolved Question:

I was discharged from a chapter 7 in February. I am still waiting for my case to close. It was an asset case.

My father in law built my house in 2003 with his construction company, we purchased it legally but now his partner is suing him for embezzlement. He claims we did not pay enough and wants to attach our home too.

How can I protect my home? Can I add supposed debt to the BK since it hasn't closed?
Submitted: 6 years ago.
Category: Bankruptcy Law
Expert:  Brent Blanchard replied 6 years ago.
Thank you for your question.

The BK Code is quite heavily concerned with PRE-petition debts. That means the events leading to the debt occurred before filing the petition, regardless of how many years later the lawsuit is filed.

It is a fairly routine matter to amend the BK schedules to list a newly-discovered debt. That itself is easier if the case is still open (I was just filing in my own records some recently-received papers in a Chapter 7 where the case was not closed and the Trustee not discharged from further duties until more than six months after the discharge was issued.).

Once the Schedules are properly amended, any related state court litigation is supposed to be automatically "stayed", or postponed pending anything done, if anything is done, in the BK case.

With accusations of embezzlement, one would expect a diligent opponent to move the lawsuit into the BK court, to challenge the dischargeability of the debt, based on "willful and intentional injury to another"--a special classification of non-dischargeable debt.

Thank you.

Brent Blanchard and other Bankruptcy Law Specialists are ready to help you