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Debtor Rights-Bankruptcy

Debtor Rights
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Bankruptcy Debtor’s rights and protection are important.    https://njbankruptcylawfirms.com/bankruptcy-protection/  Not all lawyers adhere to the code in Bankruptcy Law and debtor’s rights.     Here is an example of where a sloppy and arrogant bankruptcy law firm overstepped their boundaries.    Even though a Debtor filed bankruptcy, this bankruptcy law firm continued to sue the Debtor in State Court.   As a result, the law firm must pay $50,000 in punitive damages due to ignoring a bankruptcy Debtor’s rights and protections.

Details of Case:

  • Debtor filed bankruptcy.
  • Debtor was a basketball coach and was sued by a former player for sexual contact.
  • Law Firm who represented player dismissed their lawsuit against the coach.
  • Law Firm was notified of the Bankruptcy.
  • One year later, the Law Firm filed a Complaint in State Court for damages from the Debtor.
  • Debtor filed an Answer to the Complaint and copied the Law Firm.
  • The debtor was filing for his bankruptcy protection.
  • Law Firm claimed they did not receive the answer since it was sent to the wrong address.
  • Debtor mailed the notice to the lead associate working on the case.

Court Ruling:

  • Although the Debtor was “not an admirable person”, he was entitled to Debtor’s rights in bankruptcy.
  • Law Firm was very familiar with the bankruptcy code and debtor’s rights.
  • Law Firm used this re-filing as a tactical maneuver to try to collect from a debtor who received a discharge in bankruptcy.
  • Court found the law firms’ actions to be egregious.
  • Court ordered the law firm to pay the Debtor $50,000.00.
  • $50,000.00 in punitive damages as well as actual damages of $23,132.00.
  • Law Firms cannot plead ignorance when they try to get around the bankruptcy code.
  • Debtor’s have rights and protection when filing bankruptcy.

This law firm was sloppy and arrogant.  Rather than re-filing a Complaint, they should file a Complaint in Bankruptcy Court to determine the dischargeability of this debt.

Bankruptcy is a very specialized field of law.  https://www.americanbar.org/groups/business_law/publications/blt/2016/12/04_rubio/  A Board Certified bankruptcy lawyer is experienced in all phases of bankruptcy.   I protect my debtor’s rights in bankruptcy.  Contact Me