Bankruptcy and lawsuits

[big dogie]

I am involved with a lawsuit and the person I am suing now claims they are going into bankruptcy. Is this good or bad news. In short fighting over joint owned property now will have to fight with a bankruptcy trustee thumbs up or down?

TIA

 

[Meister]

Thumbs down. In cases of bankruptcy, if I'm not mistaken, secured creditors such as banks or secured loans get first dibs.

 

[lickrolaine]

stand in line,not going to be pretty.

 

[big dogie]

Can you clarify your relationship with the person? Your last sentence indicates that you're fighting over jointly owned property. If that's the case, your rights may be improved from those of an unsecured creditor.

QUOTE]

I'm involved with this other person in a business partnership which also has a real estate holding. They owe the partnership a large sum but are on title of the property.

 

[dreamer]

I'm involved with this other person in a business partnership which also has a real estate holding. They owe the partnership a large sum but are on title of the property.

I hope you have a partnership agreement. If so, a properly worded one would deal with the bankruptcy of one of the partners. Everything also depends on how you setup the partnership, however your partner's interest in the partnership is an asset that creditors can go after in a banckruptcy and that is why a partnership agreement typically deals with how to handle those situations.