What happens if I’m involved in a lawsuit when I file for bankruptcy?
If you are the defendant in a lawsuit, that lawsuit will automatically be stayed (stopped) by the bankruptcy filing. If the plaintiff wishes to continue prosecuting the lawsuit, the plaintiff will either have to ask the court for relief from the automatic stay or try to bring the lawsuit into the bankruptcy court to be heard by the bankruptcy judge.
If you are the plaintiff in a lawsuit where you are suing someone for money damages and you file for chapter 7, that lawsuit will belong to the chapter 7 Trustee who may choose to continue the litigation. If you file for chapter 13, you can continue to litigation outside of bankruptcy court. If you file for chapter 11, you can move the lawsuit to bankruptcy court under certain circumstances or continue litigating in state court.