Olean, NY Bankruptcy Law Firms & Lawyers

If the lawsuit is for a claim that existed before you filed, it should be discharged in the bankruptcy unless you intentionally failed to list the creditor. Unknown creditors are included in your discharge. You should consult an attorney to decide whether your bankruptcy is a viable defense and whether you should file to stop the suit in bankruptcy court or in state court.

We have to know the entire "asset" picture to answer the question, but generally and almost always the car is not affected by the bankruptcy and you get to keep it. People often ask if they can keep homes, second homes, cars, boats, tax refunds, etc., when they are contemplating Bankruptcy. I always tell them they can keep what they want of they can pay for it, or if the equity or value is protected by an exemption in their State! There are two types of Bankruptcy for most individuals. Chapter 7 (liquidation) and Chapter 13 (payments are made to a Chapter 13 Trustee to be distributed pursuant to a Plan you and your attorney draft). To determine of you get to keep the property you have to know two things. 1) What is the equity in the property? (I.e., what is it worth minus what you owe on it). 2) Will the exemption laws that are applied to the property protect the equity? Bankruptcy is much more concerned with equity than it is with debt. If you have no equity in a rental home the Trustee in a 7 or 13 does not have an interest in the property and you may keep it. If you owe more on the vacation home than it is worth you may be able to use Bankruptcy to reduce the amount of the debt, and again, keep it. When you have equity in something that is not protected by an exemption then that is an issue that a lawyer must evaluate. See an attorney right away before you act.

If the business is incorporated, it is consider a completely separate entity from the individuals who owned the business.  Absent certain circumstances (i.e. piercing the corporate veil), the corporate bankruptcy should not impact your personal finances.  You should consult with a local attorney to make sure that the corporate bankruptcy will not impact your personal finances and the closing of your home, as there are many factors to consider. This is not intended to be legal advice, and is general in its nature. No attorney-client relationship exists or is formed by this information. Furthermore, this does not represent the views or opinions of LexisNexis or its affiliated companies.