Legal Question in Bankruptcy in California

Re: Private Atty working for BK Trustee Immune

When you filed bankruptcy, you essentially surrendered your interest in that suit to the United States Bankruptcy Court. They then control the decision to settle or prosecute that lawsuit. They enjoy total discretion in what they do - the rationale is that they do what is best for the creditors, not you, and not what will punish the defendant for what you must perceive to be eggregious conduct. Remember that the attorney working for the Trustee is working at his direction - I can guarantee he did not settle it without the approval of the Trustee, and therefore the attorney has no liability as the decision was not his.

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Re: Private Atty working for BK Trustee Immune

I always tell my clients before filing bankruptcy of specifically this possibility. I also sometimes talk to their attorneys to let them know what could happen. They can then intelligently discuss the options with their client. Sometimes, a client might wait before filing bankruptcy if there's a good possibility of a nice settlement or judgment (in which a bankruptcy might not be necessary). Also, I can assure you that the attorney would rather not give up a nice fee for having done a lot of work unless absolutely necessary.