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kicklaw40, Attorney
Category: Bankruptcy Law
Satisfied Customers: 21
Experience:  I have been a bankruptcy attorney since 1998 and have handled hundreds of bankruptcy cases successfully.
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in a lawsuit if there are multiple people involved being sued

Customer Question

in a lawsuit if there are multiple people involved being sued but one th defendants is in a personal bankruptcy will the whole case has to be faught in bankruptcy court? also what kind of lawyer will the remainder of defendants need bankruptcy attorny or bussiness letigation attorney since the lawsuit is brought by one of the partners against the other of the corporation and others are put on the lawsuit that are not prtners nor share holders but just work for with the company please advise
Submitted: 4 years ago.
Category: Bankruptcy Law
Expert:  kicklaw40 replied 4 years ago.

kicklaw40 : No, the case is not moved to bankruptcy court because a defendant filed bankruptcy. When the defendant files bankruptcy, it puts a "stay" on the case such that the case cannot proceed as to that defendant until the plaintiff requests "relief from the automatic stay" from the bankruptcy court. If that is granted, the case may proceed (in the court it was filed in). If it is not granted, the plaintiffs may proceed against the remaining defendants and would have the option of filing what is called a non-dischargeability action in bankruptcy court against the bankrupt defendant. Typically, finding a debt to be non-dischargeable will require a finding that the defendant's activities were fraudulent or caused intentional harm to someone. Once in bankruptcy court, people typically have an attorney who is familiar with the bankruptcy rules and procedures, but a good business litigation attorney would do fine too. I think a non-bankruptcy attorney will just be less efficient in some ways than an attorney who is already schooled in bankruptcy practice, who will already be familiar with everything.
kicklaw40 : Please let me know if you have any additional questions so I can make sure I answered completely. Please be sure to rate my answer, and let me know if you need any additional information, as I want to be sure you are pleased that I have answered what you wanted to know. Thanks, Erin
kicklaw40 : Please post a positive rating so that I know I have answered your question to your satisfaction. Otherwise, if you need additional info or clarification, just let me know that. Thanks so much!