Expert: Mark J. Markus- California Bankruptcy Attorney - 8/13/2008

Question
My mothers elderly mom lived with her and now moved with her other daughter in Ohio,she had a money dispute with my mother and says my mom owes her money. The other daughter,my mother's sister, hates my mom and has used this as an opportunity to cause grief. At first my grandmother said my mom owed her 30,000 dollars then during the bankruptcy this went to 57,000 dollars and now she is filing a civil suit for 181,000 dollars. My mom has filed for chapter 7 in Florida. If her bankruptcy is discharged, can my grandmother still file this civil case? If her bankruptcy is not discharged, can she put a lien against her one remaining house? What if the house is in trust for her children?

Answer
No, if your mother files a bankruptcy case, the automatic stay will prevent any lawsuits from proceeding.  If she receives a discharge, then there is no debt to file a suit for.  If she does not receive a discharge, then of course a lawsuit can be filed and if she gets a judgment against your mom, she can put a lien against it or take whatever other collection actions are available under Florida law.