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Can I sue an attorney for misrepresentation in bankruptcy?

1 Answers. Asked on Apr 28th, 2012 on Bankruptcy - Kentucky
More details to this question:
a motion was filed to transfer a personal debt to my business because my business did not respond to garnishment papers. I consulted an attorney and he recommended I file chapter 7 and that the collector could no ,longer bother me. 3 months after my chapter 7 was discharged the collector levied my business account and says now the business owes the debt. He says because I didn''t respond to the garnishment papers he got a judgement on the business. I had no idea a judgemnt had been filed against my business and have not received any notification about it. I am in shock right now because I paid over $1000, ruined my credit for the next 10 years, in hopes that this agressive attorney would stop levying my accounts, and now he is still after me. What can I do?
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Answered on Apr 30th, 2012 at 8:39 PM

I don't really understand your facts.  If you filed a personal bankruptcy case and received a discharge, then that discharged you from the obligation to pay on any debts you hold personally.  It doesn't affect any liabilities owed by any other entity, including separate corporation (you don't state whether your "business" is a corporation or not, but I'm assuming it is).

Similarly, if you filed a bankruptcy for a corporation, it would not affect the liabilities that you have personally.

If your business owes debts it cannot pay and you wish to remain in business, the business should consider filing a Chapter 11 case (again, I'm assuming this "business" is a corporation).

Mark J. Markus, Attorney at Law

Handling exclusively bankruptcy law cases in California since 1991.

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If you're struggling to pay off your delinquent debts and getting hounded by collection agencies, then it's time to address your financial problems. And filing for personal bankruptcy may be the ideal solution. Whether you're an individual or married couple considering Chapter 7 or Chapter 13 bankruptcy, or a business considering a Chapter 11 reorganization, or a farmer considering Chapter 12, you need the advice and guidance of an experienced bankruptcy attorney. Your lawyer can help determine which form of bankruptcy is right for you, prepare and file all of the paperwork, and advise you throughout the bankruptcy process.
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