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  1. #1
    Join Date
    Sep 2016
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    13,916

    Default Lawsuit is Still Pending After a Bankruptcy Discharge

    An unincorporated business owner was sued for the debts and activities of his business, and filed for bankruptcy protection. The claims made in the lawsuit were included in the bankruptcy, and are covered in the final order of discharge.

    Now that the bankruptcy has been discharged, the man has discovered that the lawsuit is still pending against him in state court. How can he stop the lawsuit?

  2. #2
    Join Date
    Sep 2005
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    Default Re: Lawsuit is Still Pending After a Bankruptcy Discharge

    If in fact the lawsuit was resolved through the bankruptcy court, he may file a motion in state court to dismiss the lawsuit based on the order of discharge. If the plaintiff is trying to prosecute the lawsuit despite having been served with the order of discharge, he may also be able to petition the bankruptcy court to hold the plaintiff in contempt of court.

    It is possible for a bankruptcy to exclude a legal claim, but I'm going to assume that no exclusion occurred in this specific case.

    The lawsuit was likely stayed as a result of the bankruptcy, and it is possible that the plaintiff hasn't realized that the lawsuit technically remains pending.

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