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Notice Key to Bankruptcy Success

By Cathy Moran, Esq. Filed Under: Bankruptcy Practice

Who should I give notice to, the young bankruptcy lawyer asked, the creditor who had limited legal capacity or the creditor’s conservator?

One of the basic themes of bankruptcy is that it works on notice. Those who get notice of the case are bound by its outcome.

The bankruptcy forms allow the debtor to characterize a listed creditor has holding a contingent claim, an unliquidated claim, a disputed claim, or simply being someone who ought to get notice.  There is no down side to giving notice to those who might not, in the final analysis, be actual creditors.

So, my answer to the young lawyer was, why choose?  Give notice to both the party and his conservator.  Or the litigant and his lawyer.  Or the creditor and its collection agency.

You cannot go wrong giving notice broadly and you protect your client from a choice  whose efficacy  may be challenged in the future.

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Filed Under: Bankruptcy Practice

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