Do I file for bankruptcy before or after the company takes legal action against me? - Bankruptcy Law Questions and Answers- LawQA.com

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Do I file for bankruptcy before or after the company takes legal action against me?

I was supposed to get married in January, 2012. I sent a letter, via certified mail, letting the catering hall know that I need to cancel due to financial hardship. They contacted me and told me that according to the contract, I had to cancel 6 months prior, not 3 months. If they take legal action against me (please let me know if they can), would I be able to file for bankruptcy before or after they take legal action? It's an $18,000 tab! Please let me know asap.

Answer By Darren Aronow
The Law Office of Darren Aronow, PC
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Without reading the agreement, I cannot tell you if you are liable for damages. However, you can file bankruptcy before or after they file a legal action.

Answer Applies to: New York
Replied: 10/26/2011

Answer By Ray Fisher
Ray Fisher Law Offices
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They may be able to take legal action. It depends on the contract. It doesn't matter whether you file bankruptcy before or after they do that.

Answer Applies to: Texas
Replied: 10/26/2011

Attorney at Law
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You can file for bankruptcy any time you want to. However, it may be better for you to file before you get married if your spouse-to-be has any significant income, because his/her income will count against you for your eligibility for bankruptcy. However, if your spouse-to-be doesn't have any income (or makes very little money), then having two (or more) people in your household may actually help your eligibilty for bankruptcy. Also, if the catering company is starting to file a lawsuit against you, it may be in your best interest to file for bankruptcy before they get a judgment because even though the bankruptcy will wipe out your personal liability for the judgment, it will still remain on the books as an unsatisfied judgment, which may work to your disadvantage in the future.

Answer Applies to: Virginia
Replied: 10/25/2011

Answer By Janice Alfred
Alfred Law Firm
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Yes they can take legal action against you for breach of contract. And it doesn't matter whether you file before or after they take legal action against you as long as you list them as creditors in the bankruptcy petition. However, if this debt is the only reason why you are thinking about filing bankriptcy, you should probably wait to see whether they sue you or not.

Answer Applies to: Georgia
Replied: 10/24/2011

Answer By Cate Eranthe
Eranthe Law Firm
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If this is the only reason, you will be filing bankruptcy I would wait to see if they take any legal action. They can sue you under the contract for losses suffered due to your breach. You may have defenses and should have a knowledgeable local lawyer look at the contract and advise you of your rights. If they do file suit you can file for bankruptcy protection and notify the court where the suit is located that all proceedings are stayed (assuming no bankruptcy filed in the past eight years).

Answer Applies to: California
Replied: 10/23/2011

Answer By Janet Lawson
Janet A. Lawson Bankruptcy Attorney
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you can file for bankruptcy at any time, even after they get a judgement - unless it is a judgement for fraud (which this does not sound like).

Answer Applies to: California
Replied: 10/21/2011

Ross Smith, Attorney at Law
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You do notneed to wait until a creditor sues you to file bankruptcy. We list disputed debts, contingent debts and even debts that we know are never going to be sued upon, in bankruptcy petitions. It would make sense for the caterer to keep at least part of your deposit if there is one. However, it does not make much sense to sue a person who has no job and no assets. Sure, the caterer could sue you for the amount of their lost profit (not the entire enchilada). But why waste time , effort and money, if there is no payoff? If this is your only financial problem, then I would advise waiting to file untill after the caterer actually files suit. Keep a stash ready. You may want to dive into Bankruptcy Court in a hurry. Good luck.

Answer Applies to: Ohio
Replied: 10/21/2011

Braunstein Law, PC
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You have the option of filing bankruptcy either before or after the company takes legal action (assuming of course there are no other timing considerations which would affect your ability to file a bankruptcy). You should consult with a bankruptcy attorney to determine the best course of action.

Answer Applies to: Oregon
Replied: 10/21/2011

Bankruptcy Law office of Bill Rubendall
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You can file bankruptcy before you are sued, after you are sued, or after there is a judgment.

Answer Applies to: California
Replied: 10/21/2011

Answer By Bill Zurinskas
Bankruptcy Law Center
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It is important to talk to competent legal counsel now to determine whether to fight the lawsuit or file bankruptcy. It is generally wise to file bankruptcy before any creditor obtains judgment on a lawsuit.

Answer Applies to: Colorado
Replied: 10/21/2011

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