Civil Lawsuit & Bankruptcy

[Joseph Esparza]

What is the name of your state? California

I am involved in a civil commercial dispute. If I were to lose the case, I could possibly pay the debt only by selling my home. As an alternative, could I file for bankruptcy protection and discharge this possible liability?

 

[bigun]

If the dispute does not involve any sort of fraud, you likely could bk the judgment.
The problem is, if you have excess equity in your home beyond what your state allows for an exemption, you'd have to file a Chapter 13 if you want to keep the home.