In August 2019, two pending lawsuits filed by litigation funding companies against Manhattan attorney Marina Trubitsky were stayed pending the resolution of her personal bankruptcy filing. Green Litigation Funding filed a claim asserting that Trubitsky duped it into advancing hundreds of thousands of dollars on fraudulent claims. (New York County, Supreme Court, Index No. 652491/18) Casecash Express Inc also sued Trubitsky for $250,000 in litigation loans which she has allegedly not repaid. (New York County, Supreme Court, Index No. 656172/18)
Once someone files a petition for bankruptcy, all litigation against that person must be stayed (held in abeyance) until all alleged creditors of that person are notified and given an opportunity to present their proof of claim. Ultimately, a bankruptcy trustee will attempt to marshal all of the debtors assets and fairly distribute those assets to creditors with valid claims. In the process some creditors will get little, if anything to compensate them for their loss.