Some may think that filing for bankruptcy will eliminate debts based on fraud. In actuality, It may be true, but only if the creditor fails to file an adversary proceeding in bankruptcy court within 60 days from the initial meeting of creditors.  Some creditors may not know too much about bankruptcy law and may not know of the 60 day rule.  If they fail to file the adversary petition (basically, a lawsuit filed within the bankruptcy court), the lose their rights and the debt shall be discharged in bankruptcy.  However, sometimes, creditors will file an adversary proceeding in bankruptcy court to protect their interest.

If you have a lawsuit filed against you in civil court and the allegations are based on fraud, you should be aware that this particular debt may not be discharged in bankruptcy even though all your other debt may be discharged.  If the creditor files an adversary proceeding, it is as if they filed filed a lawsuit against you.  It is your responsibility to defend this lawsuit.  Otherwise, you will continue to be held responsible for it even after bankruptcy.

The best person to ask whether you should file for bankruptcy is a bankruptcy attorney.  By speaking to Mr. Darvish, he can guide you and determine whether it is worth fighting such an adversary claim in bankruptcy court.  You may reach him personally at (310)205-5529 or visit his website at www.BankruptcyLALaw.com