Bankruptcy Notice: Scream or Die

Add to your bankruptcy phrase book: ” notice on a scream or die basis.”   This means that the notice sent to creditors requires an objection by a dissenting party or the described action will be approved.  Contrast this with notice of a proposed action that will be considered at an actual hearing.  Thus, the message to the recipient of the notice is  scream or your objection will die.

Scream or die notice is grounded in that phrase in the code “notice and opportunity for hearing’ .  The court is relieved of the need to hold a hearing where there is no dispute; the opportunity for a hearing, whether or not the opportunity is exercised, is sufficient for due process purposes.

Another phrase for the same approach to notice is “negative notice“.

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  1. http://Zolamama says

    how do I respond to a Scream or die noyice? Do I have any rights as the lienholder?

    • http://Cathy%20Moran,%20Esq. says

      Typically, an action noticed out on a “scream or die” basis requires that you file some sort of written opposition (you “scream”) and request a hearing before the judge. Be prepared at that hearing to explain the legal basis for your opposition and whether you believe that the judge needs to determine what the facts are or just to determine whether the law allows the proposed action.


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