Is Chapter 7 bankruptcy an option for me? 11 Answers as of October 21, 2014

I had a lawsuit filed against me and my business for trade secrets violation in 2012 by my former employment. I have paid approximately $35,000 in attorney fees and have another $100,000 billed, with the expectation of another $150,000 when trial takes place in Feb 2015. I am being sued for in excess of $350,000 plus attorney fees. I am at a point of despair and am about to lose my job, so I will have no resources. I am considering Chapter 7, my only assets are my home, retirement, auto and a small amount of cash. My biggest asset is my current salary which I am about to lose.

Ask a Local Attorney. 100% Anonymous. Free Answers.

Free Case Evaluation by a Local Lawyer: Click here
Law Offices of David H. Relkin
Law Offices of David H. Relkin | David H. Relkin
The short answer, applicable in a general sense would be yes; the question, or wild card is the trade secret violation. Is it a breach of a contract you signed? And/or, if I could look at the complaint they began the case with, I would be able to give you a much better answer. A trade secret violation could mitigate against Bankruptcy. Contact me at your earliest convenience.
Answer Applies to: New York
Replied: 10/21/2014
EDWARD P RUSSELL | EDWARD P RUSSELL
From the facts you give it sounds like a bankruptcy is most appropriate.
Answer Applies to: Minnesota
Replied: 10/16/2014
GARCIA & GONZALES, P.C.
GARCIA & GONZALES, P.C. | Richard N. Gonzales
Pay a very experienced BK Atty for an hour or two of his or her time. You have to much at stake to not be sure exactly how to proceed (ask the attorney to look at 11 USC 523 with you). Good luck!
Answer Applies to: Colorado
Replied: 10/15/2014
A Fresh Start
A Fresh Start | Dorothy G Bunce
If you qualify to file Chapter 7, you certainly could do so to try to eliminate this debt. However, I would be concerned that you would likely face an objection under 11 USC sec 523 regarding this substantial debt. There may be an option under Chapter 13 that would let you bypass this potential problem that you may want to consider before making a final decision. Since this is an important decision, I would hope you would be consulting a very highly qualified bankruptcy attorney before acting.
Answer Applies to: Nevada
Replied: 10/10/2014
Barnhart Law Office
Barnhart Law Office | Bruce C Barnhart
A Chapter 7 Bankruptcy is an option. The Chapter 7 will discharge or eliminate most debts. For a debt to be declared non-discharged, generally creditors must file an objection to discharge before the deadline period. The objecting creditor has the burden of proving the debt falls within the exceptions to discharge statute.
Answer Applies to: Nebraska
Replied: 10/10/2014
    Thomas Vogele & Associates, APC | Thomas A. Vogele
    Unfortunately, it is possible a judgment against you for trade secrets violation could serve as the basis for an adversary complaint in bankruptcy to deem your debt non-dischargeable as a willful and malicious injury. That said, spending an enormous amount on legal fees in your present precarious financial position appears unwise. Your home would likely be exempt, or at least the equity up to the exemption amount for your situation, and your retirement account is exempt so long as it's an ERISA compliant plan (most are). You should quickly seek out the assistance of a bankruptcy attorney familiar with non-dischargeability actions to determine whether the claims against you are a real concern. Don't dawdle. Get help now.
    Answer Applies to: California
    Replied: 10/10/2014
    R. Steven Chambers PLLC | R. Steven Chambers PLLC
    Chapter 7 is definitely an option. From what you say my only concern is over your house and how much equity you have in it. You should consult with a bankruptcy attorney who can ask the right questions and advise you on what is at risk. I'd be happy to speak with you at no charge.
    Answer Applies to: Utah
    Replied: 10/10/2014
    Janet A. Lawson Bankruptcy Attorney
    Janet A. Lawson Bankruptcy Attorney | Janet Lawson
    I believe I answered this one yesterday. You need to consult with knowledgable local counsel.
    Answer Applies to: California
    Replied: 10/10/2014
    Hoang & Tran PLLC | Adam Tran
    Chapter 7 is available to you, but don't let your desperation put you in a worse position.
    Answer Applies to: Texas
    Replied: 10/10/2014
    Danville Law Group | Scott Jordan
    Yes. Bankruptcy is an option for you.
    Answer Applies to: California
    Replied: 10/10/2014
    Ferguson & Ferguson
    Ferguson & Ferguson | Randy W. Ferguson
    Yes. Sit down with an attorney and go over all of it.
    Answer Applies to: Alabama
    Replied: 10/10/2014
Click to View More Answers: