Legal Question in Bankruptcy in New York
Chapter 7
I recently went before the judge to have my case heard and finished. None of the creditors appeared on that particular day. It is now a month past and the attorney that assisted called to tell me that one of the creditors is suing becase prior to my filing I used their credit card to incur a sizeable amount of credit within a short period. I honestly did not have the idea to file when I used that card, but the attorney says it can be construed as fraud. He is telling me that I have the option to fight it or to allow him to negotiate a payment plan with this particular company. I paid the attorney in full for filing the bankruptcy. The attorney is asking me for $1300 to fight, or $200.00 for negotation. After I saw the judge and he granted the bankruptcy, I thought I was done with this. Now what do I do?
1 Answer from Attorneys
Re: Chapter 7
In a Chapter 7 case, you go before a TRUSTEE for the "meeting of creditors." You do not go before a judge.
Also, It is not up to the trustee to "grant the bankruptcy." When you appeared before the trustee, he did not grant you a discharge. He probably "closed the meeting of creditors."
You are entitled to a discharge in your case if there are no objections to discharge or objections to dischargability. Creditors have 60 days from the date of the meeting of creditors to file objections to discharging a particular debt if the creditor feels grounds for fraud exist. You have the right to defend yourself.
The type of law suit that was brought against you is called an adversary proceeding and is relatively rare. In general, Chapter 7 legal fees do not include representation with adversary proceedings. The fees your attorney is asking are reasonable. You do not have to pay them. You can defend yourself, but that would probably not be in your best interest.
I urge you to sit down with your attorney and discuss the case further. Most adversary proceedings are settled, sometimes for very modest amounts. That is your best bet.
For additional information about adversary proceedings in bankruptcy cases, there is an article about them at: http://www.bankruptcycanhelp.com/published-articles/2004-06-N-Proceeding-Primer.php
Related Questions & Answers
Looking for something else?
10,200 active attorneys ready to answer your legal questions today.
Featured Attorneys
Earn additional revenue and grow your business.
