Can my creditors file a lawsuit if I apply for bankruptcy? 4 Answers as of October 28, 2010

I am about to file for Chapter 7 bankruptcy and I want to know if it is possible – either during or after the filing process – if my creditors can file a lawsuit against me.

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Law Offices of Juan Dotson
Law Offices of Juan Dotson | Juan Dotson
Creditors can only file a lawsuit against you in state court during your bankruptcy (i.e., eviction) only if there is no automatic stay in effect (lost motion to impose a stay). If your debt has been discharged, creditors cannot sue you to collect the debt. Creditors can get a debt declared nondischargeable if they can prove fraud in obtaining the credit (never intended on paying back debt): credit purchases or cash advances over $1150 within 60 days of filing, debts from malicious injury to others or property, debts from larceny or other fraud, debts from a divorce decree
- Debts you incurred based on fraudulent acts

- Credit purchases in excess of $1,150 taken within 60 days of filing

- Loans or cash advances in excess of $1,150 taken within 60 days of filing

- Debts incurred as a result of willful or malicious injury to another person or another person's property

- Debts from embezzlement, larceny, or breach of trust

- Debts owed under a divorce decree or marital settlement agreement, unless you would still not be able to pay them after bankruptcy or the benefit of having these discharged is found to outweigh the detriment to your ex-spouse.
Answer Applies to: California
Replied: 10/28/2010
Sussman & Associates
Sussman & Associates | Mitchell Sussman
They can in bankruptcy court for non - dischargeability. In most cases, however, this does not happen.
Answer Applies to: California
Replied: 10/27/2010
The Law Office of Mark J. Markus
The Law Office of Mark J. Markus | Mark Markus
Creditors can file suit in the bankruptcy court to seek to have debts declared nondischargeable, but if you are asking whether they can sue you in state court to recover on the debt you owed them prior to filing your bankruptcy case, the answer is no, unless you do not receive a discharge of the debt in the bankruptcy.
Answer Applies to: California
Replied: 10/27/2010
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