Legal Question in Bankruptcy in Indiana

Do I have a case for legal malpractice?

My husband and I are currently going through a Chapter 7 bankruptcy which has not been discharged yet. We recently closed our business, but still have monthly income from the buyer of a previous business we sold 8 mos ago.

At the 341 meeting, the trustee asked me if anyone owed us money. I told him about the buyer of the previous business. He said that was not income, but an asset that would be liquidated by the court. I was shocked beyond belief! Our only source of income was now gone, however we were both seeking employment. Our attorney never advised us that we would lose that ''income''. In fact, his assistant said because that money was paying our living expenses, it was exempt. A few days ago I finally recieved a copy of the petition. There are omissions everywhere and much of the information is inaccurate. I'm truly frightened that we will get in trouble. I feel that the attorney & his assistant are incompetent and he should be dis-barred! Is there anything we can do?


Asked on 2/05/04, 4:05 pm

1 Answer from Attorneys
Mary Ann Wunder Wunder & Wunder

Re: Do I have a case for legal malpractice?

You can insist on a hearing on the matter to have the judge decide whether you are entitled to exempt property or not. You can also dismiss your bankruptcy and refile later after consulting other counsel. Generally, you must disclose the basis of income that is not wage income. Perhaps your current attorney needs to talk to his malpractice carrier OR he will be more than happy to complete your case at no additional charge.

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Answered on 2/06/04, 8:59 am


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