US Bankruptcy is a legal proceeding in which a debtor files a complaint against the lender of that particular bank with the US bankruptcy court. This may be done as either a voluntary or involuntary liquidation proceeding, i.e. when one is forced to declare bankruptcy. A debtor has the right to file a lawsuit for various reasons, among which are detailed below.

US Bank Lawsuit

US Bankruptcy lawsuit funding can be availed by debtors who are unable to pay off their debts because of failure to comply with court ordered deadlines or for other reason. This is known as Non-Party Bankruptcy. There are different types of Non-Party Bankruptcy claims, all of which have different bases of eligibility. Among them, priority claims receive greater priority in relation to debtors’ financial hardships.

Priority Claims: The claims listed in the pre-trial schedule and the list of claims filed in a lawsuit become priority claims.

These claims, once approved by the court, will be paid off by the US trustee, with interest and fees. If the case proceeds until the judgment is made on the case, the defendant will repay only the expenses borne by him. But if the case concludes before judgment, then the defendant has an obligation to repay to the US trustee, all expenses and interests. Thus, among many reasons, non-party cases are more attractive because they enable debtors to avoid paying hefty litigation costs.

Damages: Among other damages, one may seek damages for pain and suffering.

The amount of damages to be claimed may vary from a minor injury to substantial damage. Pain and suffering are calculated based on the standard of living prevailing at the time of the injury. Us Bankruptcy Lawyers helps debtors to calculate the damages to which they may be entitled.

An assignment agreement may also be included in a lawsuit, which is signed by the defendant and the plaintiff (the party filing the lawsuit).

The assignment allows the bank to assign the lawsuit to an agent (usually a Lawyer) on the plaintiff’s behalf, to manage the lawsuit and make periodic payments to the attorney. The assignment provides that the claims against the debtor will be held harmless. An assignment is effective only if the lawsuit is filed in a court of law. Bankruptcy cases have special procedures to assign the case to an appropriate Bankruptcy Attorney; such procedures should be followed in order to avoid any confusion. Once the assignment is filed, the case is assigned to the attorney.

Upon the filing of a lawsuit, the parties must submit discovery to a Bankruptcy Court. Discovery is needed to fully review and evaluate the claim. Parties filing a lawsuit need to obtain discovery from the US trustee. Discovery is used to obtain financial records, to review the claim as well as to determine admissibility of the complaint. The bank cannot deny the allegations of the lawsuit without evidence that they are true and that the statements in the complaint are true.

Leave a Reply

Your email address will not be published. Required fields are marked *