Posted on March 5th, 2019
A full transcription of the video is below.
Hi everybody, this is John Fogerholm from defendmybiz.com and today I wanna talk about bankruptcies, bankruptcies in the context of employment lawsuits and employment defense.
So I’ve gotten a couple of questions about, can you discharge an employment claim in bankruptcy? And the short answer is you can discharge an employment judgment in bankruptcy but not the claim itself.
The difference is if somebody makes a claim, “Hey, I was sexually harassed,” and they file a lawsuit. That cannot be discharged in bankruptcy.
However, if there is a judgment on that claim, that can be discharged in bankruptcy, in most case. This is law we’re talking about.
There’s always loopholes or ways to get around everything and so certain judgements can’t be discharged. For example, fraud couldn’t be discharged.
So, again, the short answer is yes, an employment judgment could be discharged in most cases. For example, if there’s a sexual harassment claim for 1.5 million and it’s gonna put you out of business then what’s the point if you can’t settle it?.
So if you intend to file a bankruptcy because that’s the best option for you, after the judgment, you file a bankruptcy and the judgment will be discharged in bankruptcy in most instances.
Also, BK is often used as a tool even before a judgment. So, for example, if you just can’t settle a claim, you know that there’s gonna be a judgment then you file BK or threaten to file BK and sometimes that leads to a settlement. Sometimes it doesn’t and you filed a BK and it stops the case anyway.
So that’s my take on Bks and thanks again for watching this video and I’ll see you next time.
