Landlord suing before filing bankruptcy - CA

I just closed my own restaurant business here in CA (Northern, SF area), and must file bankruptcy. I closed my restaurant because I received a 3-day notice to leave the premises; I was 4 months behind on rent. I met this free-consultant attorney, and I was told to close my business account with the bank. However, this attorney told me that I would have to wait for filing bankruptcy for 3 months after closing my business account.

My questions are 1) what will happen if the landlord sues me before filing bankruptcy? 2) Will I be responsible for the debts entirely? Or, 3) Am I still be able to file bankruptcy after getting sued? Please advise. Thank you.

If the LL sues you prior to filing BK, you can list him as a creditor on the BK and eliminate the debt. Chances are he will wait until after you file, so you can't include him.

Originally Posted by Unregistered If the LL sues you prior to filing BK, you can list him as a creditor on the BK and eliminate the debt. Chances are he will wait until after you file, so you can't include him.

Thank you for your reply. I already know the creditor's name, so I think LL (a real estate company) already knows that I would list them as a creditor. But my understanding from your quote is that I can still file bankruptcy after LL sues me and I may be able to elminate my debts.

You can file and discharge the debt after he sues you. Only these debts cannot be discharged:
* Court fines
* Debts due to the Child Support Agency (CSA)
* Student loan debts
* State benefit overpayments
* Secured debts
* Awards for damages and fraud
But if he knows you are going to file, he probably will hold off on suing you. If he does wait, you cannot include him as a creditor or discharge any assumed debt since there is no judgment against you (no debt listed).

What will probably happen is that he will wait until after you file for the BK to sue you. He can wait up to 4 years to do this (that is the statute of limitations for written contracts in CA). If he sues AFTER the BK is filed and completed, you cannot discharge the debt. Once the BK is done, you cannot file again for years. The question then becomes, who can hold out longer? You, with your other debts, or he, while waiting for his money? In most instances, your debts will become more pressing than his need for the 4 months of rent. The tenant usually files for the BK, then after the debts are discharged, the LL files for the rent money. The judgment cannot then be discharged.

hmmm, tricky situation

Originally Posted by Unregistered You can file and discharge the debt after he sues you. Only these debts cannot be discharged: * Court fines * Debts due to the Child Support Agency (CSA) * Student loan debts * State benefit overpayments * Secured debts * Awards for damages and fraud But if he knows you are going to file, he probably will hold off on suing you. If he does wait, you cannot include him as a creditor or discharge any assumed debt since there is no judgment against you (no debt listed). What will probably happen is that he will wait until after you file for the BK to sue you. He can wait up to 4 years to do this (that is the statute of limitations for written contracts in CA). If he sues AFTER the BK is filed and completed, you cannot discharge the debt. Once the BK is done, you cannot file again for years. The question then becomes, who can hold out longer? You, with your other debts, or he, while waiting for his money? In most instances, your debts will become more pressing than his need for the 4 months of rent. The tenant usually files for the BK, then after the debts are discharged, the LL files for the rent money. The judgment cannot then be discharged.

Thank you for your reply. Another person answered me the same thing - If I file BK before LL sues me, "I cannot include LL as a creditor or discharge any debts." What does that mean by?

1) Say, my LL's name is ABC Realty, Inc. I file BK with LL's name (ABC Realty, Inc.) and list the back rents, then can I discharge all the rent debts?

2) Say, LL changes their name(s) AFTER BK is filed, then BK is completed with their old name(s) and debts, then what happens? Is LL entitled to sue me after changing his name?

If you have never received a bill from the LL, how can you claim him as a creditor? He hasn't presented you with any bill to pay. What bill can you show the BK judge or attach to the paperwork to show the debt? Unless he send you a bill or sues you for the money, you don't owe him (or at least there is no proof of it). You only recieved a 3 day notice from the lL, not an eviction suit. Nothing from the court at all.