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Posted by Ted_MI on 2/13/05 9:00pm
ItsMe123,
In your preceding two posts you asked two questions:
Does one who wants to file a bankruptcy want to be involved in an upcoming civil case?
and
Seems if you started a suit or was to become a defendant in a suit it would affect the filing.
In response to your first question, I am not sure if anyone ever really wants to be involved in a civil case, particularly as a defendant. One it's a hassle, two it costs money as you usually have to retain an attorney to defend you, and three you may be subject to a judgment against you. But oftentimes one does not have a choice; one has a suit filed against them. Often times bankruptcy is filed to forestall the filing of a suit, such as foreclosure.
There was an interesting study that was just released that showed that about half of the personal bankruptcies were due to catastrophic (or maybe major would be a better word)medical events. And the vast majority of people who filed for bankruptcy under these circumstances had health insurance!!
In response to your second question, if you were a defendant in a lawsuit, it is not so much that it would affect the bankruptcy filing but conversely that it would be affected by the bankruptcy filing. Once a petition in bankruptcy has been filed, there is an automatic stay of most lawsuits and judgement creditor actions. I use the word "most" as there are definite exceptions, certain causes of action which are not affected by the bankruptcy filing. |
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