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  1. #1
    Join Date
    Jun 2011
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    1

    Default What Happens to a Lawsuit if the Defendant Files Bankruptcy

    My question involves bankruptcy in the state of: new york

    I am suing a dentist for malpractice, the dentist have no malpractice insurance.
    The dentist filed chapter 13, is my case dead?

  2. #2
    Join Date
    Sep 2010
    Posts
    478

    Default Re: Denfendent Filed Charpter 13, is My Case Dead

    Yup, your case is "dead" - assuming the debtor eventually gets a discharge. Make sure you file a Proof of Claim in the Chapter 13.

    Des.

  3. #3
    Join Date
    Sep 2005
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    Default Re: Denfendent Filed Charpter 13, is My Case Dead

    A Chapter 13 bankruptcy restructures debts, and the discharge is usually partial (at times there's a 100% repayment plan). When you have a lawsuit pending, it may be possible to get permission from the bankruptcy court to continue the lawsuit (obtaining relief from the stay) or it may be that the tort claim ends up being litigated in the bankruptcy court. As this would normally be an unsecured, dischargeable debt, it would be repaid in whatever reduced amount is ordered as part of the repayment plan (e.g., 10%, 30%, etc.)

    Keep in mind that a lot of debtors fail to comply with their repayment plan resulting in discharge, under which circumstances the full amount owed (less whatever has been paid through the bankruptcy court) can again be collected.

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