Central District Consumer Bankruptcy Attorney's Association

It depends on the basis for the lawsuit.
David A. Tilem
Certified Bankruptcy Specialist*
Law Offices of David A. Tilem (a debt relief agency)
206 N. Jackson Street, #201, Glendale, CA 91206
Tel: 818-507-6000 Fax: 818-507-6800
* Bankruptcy specialist cert. by State Bar of CA Bd of Legal
Specialization.
ArnoldH
Sent: Friday, May 21, 2010 12:17 PM
To: cdcbaa@yahoogroups.com
Subject: [cdcbaa] How are lawsuits treated on business vs. Consumer debt ?
If a sole proprietor has a lawsuit against him pending and the claim is
disputed, is the lawsuit considered a business debt ? Would the debtor than
be entitled to avoid the means test for purposes of a ch7 bk if the lawsuit
exceeds the consumer debt ?
Message
It depends on the basis for
the lawsuit.


David A.
Tilem
Certified Bankruptcy
Specialist*
The post was migrated from Yahoo.

Assumes facts not in evidence. IF the lawsuit is a claim primarily
involving the business and not him as an individual or consumer, then see:
Runski 102 F3d 744.
If it's a claim subject to discharge - 11 USC 101(5)(A) - then I don't see
how the OUST could deny it. If it merely a dispute which had not yet become
a lawsuit (ie: nonbankruptcy law), then my answer might differ.
Hale
ArnoldH
Sent: Friday, May 21, 2010 12:17 PM
To: cdcbaa@yahoogroups.com
Subject: [cdcbaa] How are lawsuits treated on business vs. Consumer debt ?
If a sole proprietor has a lawsuit against him pending and the claim is
disputed, is the lawsuit considered a business debt ? Would the debtor than
be entitled to avoid the means test for purposes of a ch7 bk if the lawsuit
exceeds the consumer debt ?

The post was migrated from Yahoo.