In most bankruptcy cases, creditors will submit proofs of claims. If parties object to such proofs, the courts will typically assess whether the objections are valid and, in some instances, may reduce a creditor’s claim. This was illustrated recently in a ruling issued in a California bankruptcy case in which…
In bankruptcy cases, creditors have the right to file appeals. If the court finds that they failed to adequately preserve their rights, though, it may dismiss the appeal as equitably moot. Specifically, if a creditor neglected to seek a stay of bankruptcy proceedings before filing an appeal, their appeal will…
Under California law, it is well-established that parties only get “one bite of the apple.” In other words, they only have one chance to assert a claim, and if they receive an unfavorable verdict, they cannot attempt to relitigate the claim before another court. This was demonstrated in a recent…
Bankruptcy proceedings have allowed millions of parties to escape overwhelming debts, regain financial stability, and move forward with their lives. While a broad array of people are eligible for bankruptcy relief, there are certain rules and guidelines that people filing bankruptcy petitions must adhere to, and if they do not,…
It is not uncommon for a creditor to assign a debt or the right to collect money owed from a debtor to another party. In such instances, the assignee enjoys the same rights and privileges as the creditor did prior to assigning the debt. Thus, if a creditor’s debt was…
In many bankruptcy cases, there are insufficient funds to fulfill the debtor’s obligations. Thus, the creditors may enter into a stipulation regarding how any available money should be distributed. Such stipulations do not necessarily mean that a creditor cannot pursue any other claims against a debtor, however. The implication of…
One of the many benefits of bankruptcy is that it stays parties from litigating claims against the debtor. The stay is not limited to actions involving creditors attempting to recover debts but also precludes any claim that may result in a judgment against the debtor. Notably, though, the stay only…
When a party files for bankruptcy, the party’s property and assets will typically be transferred to the bankruptcy estate. This includes not only tangible assets, like personal property, but also potential sources of recovery, like litigation claims. Recently, a California court discussed sales of litigation claims in the context of…
In many marriages, couples jointly own real estate. While couples may not consider the nature of the title of a property, in the context of bankruptcy, how a jointly owned property is characterized is a critical consideration for determining whether it will become part of the bankruptcy estate. The factors…
Not all bankruptcy petitions that are filed are granted. Instead, in some cases, the court will deny a petition or dismiss a case. Fortunately, however, the law allows for appeals, and in many instances, a petitioner can persuade a court to reverse its ruling and allow a bankruptcy action to…