NSW Cannot maintain legal action

[Hellomyonlyfriend]

Hi I had commenced legal action as a plaintiff a few years ago.

I subsequently got charged with criminal offences and defending it took all my savings.

I cannot maintain the proceedings.

I have no assets. If I discontinue the proceedings and get cost orders will bankruptcy wipe the legal cost orders made by the court.

Thanks

 

[Nighthelyn]

Dear Hellomyonlyfriend,

It depends.

S81 Bankruptcy Act - bankruptcy would protect you against most debts
S82 Bankruptcy Act - bankruptcy does not protect against debt that is not liquidated (amount known) on the date of bankruptcy
S82(3) Bankruptcy Act - penalty and fine against a law is not protected, notably including penalty and fine for restitution of a victim in civil case due to an offence by you

This means:

1. Cost order In your pure civil claim, if judgement is made before your bankruptcy, you are protected;
2. Cost order in your pure civil claim, if judgment is made after your bankruptcy, you are not generally protected;
3. Cost or any penalty/fine order in your criminal offence, you are not protected;
4. Cost order from victims if any of your criminal offence who subsequently sue in in civil claim, you are not generally protected.

See What happens to my debts?

Before you seriously consider bankruptcy, which is a last resort, you should seriously consider talking to e.g. a financial counsellor first if there are any other options.

Good luck!

-Nighthelyn

 

[skaticeolive]

I'm not a legal expert, but I can try to provide some general info. In some cases, bankruptcy may help with wiping out legal cost orders, but it really depends on the specific laws in your jurisdiction.

 

[Hellomyonlyfriend]

All good. Agreed to discontinue with no order as to costs.

 

[CirLott]

Hi I had commenced legal action as a plaintiff a few years ago.

I subsequently got charged with criminal offences and defending it took all my savings.

I cannot maintain the proceedings.

I have no assets. If I discontinue the proceedings and get cost orders will bankruptcy wipe the legal cost orders made by the court.

Thanks

Suing is expensive. I read your words and realised that it is better not to start a lawsuit unless it is absolutely necessary.