Bankruptcy trustees often handle multiple cases at one time and are expected to keep track of the unique facts and pleadings of each case. If a trustee hastily files a pleading in the wrong case, it may negatively affect their rights, as demonstrated in a recent ruling issued by a…
There are key differences between Chapter 7 and Chapter 11 bankruptcy, and which one is appropriate depends on a debtor’s unique circumstances. While debtors must pass a means test in order to pursue Chapter 7 bankruptcy, that does not mean that their decision to seek debt relief under that Chapter…
One of the many benefits of filing for bankruptcy is that an automatic stay is imposed that prevents parties from filing a lawsuit against the debtor. If a party ignores the stay and files a civil action against the debtor, the debtor may be able to recover sanctions. The courts…
In bankruptcy matters, the debtor must set forth schedules that include all of their property, assets, income, sources of money, and debts. Among other things, this includes any pending or potential claims or lawsuits. If they fail to properly disclose such information, they may be barred from pursuing such claims…
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…
While bankruptcy grants many people relief from overwhelming debts, not all bankruptcy proceedings are resolved in a straightforward manner. Instead, in some cases, one or more parties will file an adversary proceeding objecting to the discharge of the debtor’s debts. While there are pleading and procedural rules that parties filing…
Bankruptcy proceedings typically involve a substantial number of documents. Specifically, debtors must provide all available information that demonstrates their financial status and transactions. If a debtor fails to provide such information and does not have a valid reason for the lack of such documentation, their claim may be dismissed. This…
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,…