Q: My family member filed for bankruptcy. His case was closed and then given to another lawyer who sued him for the same
Debts. He paid him 100,000 not to lose his house. The lawyer ( trusty) and his wife came in to short sell my brothers and his families house. He thought the case was closed. He is now suing him for the third time and his LLC which is my mothers land and property. This is occurring in the Eastern district of Va. is this legal? Being sued three times for one bankruptcy. My mother is Native American and is devastated. She has declined mentally and physically because of this. The judge who approved to proceed for the third time quoted a Pennsylvania statute. My brother was initially told by his lawyer the Va statute is clear and it would be dismissed
It was not. Please is this legal?
A: It depends on the situation. There are many reasons why a Trustee or their counsel would have to sue someone in a bankruptcy case. I would need more specific information to be able to form any sort of answer to this question.
A: WEll there must be more to the issue and a lot of questions remain open. Was there a fraudulent conveyance to LLc. Was there a final short sale to the attorney or was the title a fraud in transfer. Was this ch 7 11 13 or ch 5. You really need an experienced bankruptcy lawyer next to a real estate litigator. I can't tell but sounds like different parties are being sold. Once land is released by TRustee from a ch 7 BR who got it on the return side of discharge date. This is not a question that can be answered on the cheap through web site inquiry as it involves a lot of facts that appear unclear here. Maybe additional research. Apparently, the Judge saw something. There is a bad faith filing allowing for recovery of litigation fees if this is meritless repeat filing. Also how were the cases closed ...nonsuit, without prejudice with prejudice. f she does not defend she could lose it. The amount you pay a lawyer does not guarantee success. A $100k fee is ridiculous . You need to make sure you were not conned by the lawyer you paid it to. THis whole scenario is not understandable.
I agree with what the other lawyers stated. It would make sense for you to:
1. Ask your lawyer for a written explanation of what is going on;
2. Take that letter to another lawyer for an opinion;
3. If you feel like your lawyer is defrauding you, ask for an explanation and if unsatisfied, call the state bar;
4. Ask for all your files, documents relating to your case, and an accounting of time.
$100K for any case is an extreme amount of money.
It does not make sense that your own lawyer would try to short sell your house from under you--but it is possible that I did not understand your question, and you mean that another lawyer has gone after the house. There are many reasons why a bankruptcy could be closed without being discharged--such as the debtor's failure to comply with the Court's requirements, bad faith, or fraud on the court, for example. So theoretically yes a lawyer could be coming after you or your relative after three failed attempts to get a case through the bankruptcy court.
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