Recent Answers to Bankruptcy Law Questions

Can I file for bankruptcy if I have a pending lawsuit against someone? I am currently involved in a legal dispute with a business partner who has caused significant financial harm, and I am considering filing for bankruptcy to alleviate the mounting debts. However, I am uncertain if the pending lawsuit will affect my eligibility for bankruptcy or if it will have any impact on the outcome of the case. I would appreciate clarification on how bankruptcy proceedings interact with ongoing litigation.

Ralph S.

Answered Aug 1, 2025

Yes. Suggestion of bankruptcy filing stays most types of cases, and the claims become part of the estate if the debtor is the plaintiff .

I am currently facing financial hardship due to a combination of medical bills and job loss, and I am finding it increasingly difficult to keep up with my monthly expenses, including my outstanding student loans. I have heard that bankruptcy can provide some relief for individuals struggling with debt, but I am unsure if student loans are eligible for discharge under bankruptcy proceedings. I would like to know if it is possible for me to file for bankruptcy and have my student loans included in the discharge, or if I will still be responsible for repaying them after the bankruptcy process is completed.

Phillip Z.

Answered Jan 18, 2025

Yes, it's possible to file for bankruptcy with student loans, but the petitioner must demonstrate a higher level of hardship compared to other debts. As is often the case in legal matters, the specific details and circumstances will play a crucial role.

I am currently in a difficult financial situation and am looking at my options to get out of debt. I am considering both a debt settlement agreement and filing for bankruptcy, but am not sure which option is best for my situation. I am hoping to get advice from a lawyer regarding the pros and cons of each option, so that I can make an informed decision.

Jeffrey Z.

Answered Aug 15, 2023

Bankruptcy is a very large part of my practice. I have had many clients that have attempted to use a debt resolution service without success. Unfortunately, they often pay a substantial amount of money to the service, their debts do not get resolved, they end up in bankruptcy anyway, and they do not get their money back. Aside from the difficulties in successfully completing a debt settlement agreement, there is also a tax issue. Forgiven debt is considered taxable income. You will receive a 1099 from any creditor that accepted a reduced amount to satisfy a debt. The result may be an income tax liability that you were not expecting. Debts that are discharged in bankruptcy are not counted as income.