Personal Bankruptcy About to get Sued... Is Bankruptcy an Option In TN?

[nashvillecouple]

I have recently left my job, and have found out that they are sueing me for breech of contract. While the case is somewhat weak... I do have in the conditions of employment that I would be responsible for all of their attorney fees if I violated any of the covenants. I did not have a non-compete, but had an agreement that said I must always act in the best interest of the company, and not steal any of their customers. I started my new company a couple weeks before I left my previous job, and while I started to prepare for the company... I did not contact customers, or make a sale until after I left my previous company.

So my question is that my wife and I just bought a house and have about 15k equity in it. Our cars are worth less then we owe. We have furniture and things... but I am not sure if they have access to those things. We are debating if it would be good to file bankruptcy before or after a judgement so we do not lose our house or cars etc.

 

[NYClex]

The company is using scare tactics and it seems to be working. Before you make any rash decisions like filing for bankruptcy you should sit down with an attorney and really go through the case detail by detail. I have read the other thread you posted and it sounds as if they have a weak case, there may have been some contract violations on your side but it sounds doubtful to me if there has been much damage.

You should invest in a good consultation with a lawyer. Usually none of the parties really want to end up in court, everyone would want to settle this conflict. Your former employer's interest is not having competition next door, your interest is opening your own business. There might be some middle ground somewhere. It might also be an idea to try to settle this by using a mediator. These are the things you should discuss with your attorney.

Bankruptcy should be a last resort. By now you have neither been sued nor is there a judgment against you, so filing for bankruptcy would serve no purpose now. Take this one step at a time. First find a good attorney.