Bankruptcy and pending court case

Jan 15, 2008 2 Replies
H

Hi all. Hope you can help.



I need to know what happens when a civil case (financial based - breach of contract), has not yet been heard and one of the 2 defendants declares bankruptcy. Both defendants are being sued jointly and individually.



After the bankrupt defendant has informed the court and the claimant, what are the claimant's options? Are they..



a/ allowed to pursue the case against the bankrupt as if nothing has happened (and then claim any resulting award through the receiver).



b/ forced to cease the case only against the bankrupt but continue against the other defendant.



c/ forced to halt the case altogether and then bring a new case against the remaining defendant.



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P

I'm not a lawyer but I would have thought that a was the most likely.

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R

uk.legal might be a better place to ask. I should think there may be at least one other possibility: Is it not the case that you can't just declare bankruptcy, but that you have to apply to the court for it to declare you bankrupt? If so, that application might fail in the circumstances of a case being pending against the applicant.

It shouldn't matter that the case has not yet been heard, provided proceedings have formally commenced and the defendant has been served with the proper papers. Once that has happened, I'd have thought it would be tantamount to contempt of court to give away assets to friends and family in order to appear too poor to be able to pay any damages a court would normally award you against this person, who would appear to be a very slipper customer! If the amount is substantial enough, you might be well advised to consult a solicitor rather than go it alone and risk losing it all.

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