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HCLegal, Attorney
Category: Bankruptcy Law
Satisfied Customers: 423
Experience:  I have filed over a thousand bankruptcy cases.
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Bankruptcy with a real estate lawsuit listed in bankruptcy.

Customer Question

I filed bankruptcy and the discharge date was yesterday. There were NO challenges or adversary proceedings filed by any of my creditors. One large part of my bankruptcy was a lawsuit that I was involved in ( I was being sued for 300k) for a real estate transaction where I represented my seller and I was accused of intentional misrepresentation. I did NOT intentionally leave out any disclosures at all, perhaps why an adversary proceeding was never filed? I hired a bankruptcy attorney to handle my bankruptcy and he listed all parties in the lawsuit( I was not the only one being sued. My broker, the buyers agent, the buyer's agent's broker were sued too). The way my attorney listed the parties in the lawsuit were the defendants' names care of their attorneys' names respectively. I had a real estate attorney tell me that I better make sure the LAW FIRMS were named in the bankruptcy as creditors and not just the attorneys' names who were representing their clients. My question is, is this true?? I really want to be at peace with this whole thing and put it all behind me now that my discharge date has come and gone with no adversary proceedings. My concern/fear/worry is that my bankruptcy was ineffective because the LAW FIRMS were not listed. Again, the defendant's CARE OF their attorney was listed... for example John Doe care of Bill Johnson(attorney). Bill Johnson works for, let's say, Best Law Firm. Best Law Firm was not listed. I know I am repeating myself but I just want to be clear you understand. Am I safe? How likely is it that a judge would allow them to still come after me?? My bankruptcy attorney says he did it correctly with the creditor's name/other defendants in lawsuit CARE OF the specific attorney's name that is representing them. Please help me understand. I am in California, if that makes a difference to you. Thanks you.
Submitted: 5 years ago.
Category: Bankruptcy Law
Expert:  cfortunato replied 5 years ago.

Hi JACustomer,

Were the sellers or the buyers suing you? (Which were the clients - the buyers or the sellers?)

Were the clients' names listed in your Bankruptcy petition?

Customer: replied 5 years ago.
The buyer of the home I listed was suing me, her agent (buyer's agent), her buyer's agent's broker, the sellers, myself, my broker. Yes, my client's (the sellers) were listed in the bankruptcy petition.
Expert:  cfortunato replied 5 years ago.
The only creditors here are the buyers - the ones who were suing you. Accordingly, the buyers are the only ones that had to be listed as creditors on the Bankruptcy petition.
Their lawyers could also be listed - but only for the purpose of receiving notices from the Bankruptcy court - and it would not make a difference if the individual lawyers were listed or if their law firm was listed, or if both were listed.

I think this is what you wanted to know. If not, please let me know.
Thank you.
Expert:  HCLegal replied 5 years ago.
Based on everything that you have said you will be ok. The biggest thing is giving each party NOTICE that you filed bankruptcy. So even though you didn't list the law firms as creditors, they still got notice when you sent it to the parties attorney in care of.

Fraud is not dischargable in a bankruptcy, but short of them having a judgment against you with a fraud finding or them filing an adversary there is no way for them to prove the fraud. Now that you have your discharge you should be good to go!