Most bankruptcies go smoothly and are the right solution for solving serious financial problems. This is especially the case for people who work with an attorney when filing their bankruptcies. Bankruptcy attorneys offer guidance and support through an unfamiliar situation. Unfortunately, there are instances in which this is not the case and if you face a lawsuit during your bankruptcy, things can get complicated.
A lawsuit brought against a person filing bankruptcy is called an adversary proceeding and if you are not already working with an attorney for your bankruptcy, hiring one if you face a lawsuit is essential. There is a variety of reasons you might be sued during your bankruptcy. Creditors have the right to sue to prevent the discharge of debts. It is also possible for a trustee to sue someone filing for bankruptcy, especially if there is suspicion of fraudulent conveyance.
What Should You Do If You are Sued during Bankruptcy?
If a lawsuit is brought against you during your bankruptcy there is no need to panic. Lawsuits in and of themselves do not mean much. You and everyone else have the right to sue anyone for any reason as long as the necessary fees are paid. A lawsuit does not mean anything will happen, but you are required to comply with court procedure if you are sued, so even nothing comes of it, it can be a major inconvenience.
Once you receive the complaint associated with the lawsuit you must respond by filing an Answer or a Motion to Dismiss. Both are common but can seem complicated if you have never gone through the process before, so the assistance of an experienced attorney is essential.
You will likely also be required to appear in court for a status conference that allows a judge to gain better understanding of the details of the case. This is also when decisions will be made about various deadlines for the lawsuit and future hearings will be scheduled.
Working with an Attorney during Bankruptcy
If you receive notice of a lawsuit in the midst of your bankruptcy and you feel concerned or frightened, you are not alone. It is a common reaction, but you do not need to worry all that much. The guidance and advice of an experienced bankruptcy attorney will help you through the process and ensure your rights are protected, regardless of the actions creditors and others take against you.
Do you have other questions about lawsuits and bankruptcy? Are you looking for assistance with your bankruptcy filing? The Law Offices of Robert M. Geller can help. Contact us at 813.254.5696 for more information.