Why is my corporation being sued if I filed for bankruptcy?

The debt is only discharged as to the Debtor and not as to the corporation. Corporations are treated as a separate entity from the Debtor. However, a lawsuit including a Debtor and a corporation may be subject to the automatic stay. Chapter 13 provides for a co-debtor stay. Further, in a Chapter 13 if a Debtor proposes to pay 100% of a joint debt with the corporation, the protection of the automatic stay will apply and the corporation along with the Debtor will be relieved from liability upon final payment under the Plan. For further clarification about filing for bankruptcy, please feel free to contact us  and one of our bankruptcy attorneys in Miami will be happy to help you.

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