What happens if someone won a lawsuit against you and you declare bankruptcy due to an inability to pay the judgment?
What happens if someone won a lawsuit against you and you declare bankruptcy due to an inability to pay the judgment? Assistant at Ascent Law LLC Assistant at Ascent Law LLC When you file for bankruptcy, most of your assets and liabilities will be wiped out. This includes lawsuits and collection actions. Even though you can still file a lawsuit, it can be much more difficult and expensive. Bankruptcy will also make it impossible to file a lawsuit for fraud or malicious injury. If you are sued for a debt, the first thing to consider is whether you can fight the lawsuit. This will prevent the lawsuit from moving forward and will put a halt to it. The chances of winning are 50/50, but you can try to fight the lawsuit. However, this is very expensive and may not be a viable option if the lawsuit is valid. Generally, if you lose a lawsuit, the state court will have jurisdiction over the underlying debt. However, if you have already been granted bankruptcy, the state court will likely allow ...