Q: Non-judgement bankruptcy question.
I have a judge’s order from an administrative law judge for attorney fees in a civil rights case. I found out this administrative judge does not have the power to award, but I filed a Chapter 7 bankruptcy. Now the attorney is stating the fees are being challenged to avoid the bankruptcy. My options are to pay the other party or make the other party go to federal court for a judgment. My question is if the time frame is up for the other party to file for attorney fees, should I just let this go? The other party also risks a federal judge will lower the $50k in fees.
A: We cannot answer this question without more information. I assume the attorneys fees were awarded against you. You did not give us any description of what specific civil rights violation you were found liable for (what the ALJ found that you did). Certain debts are not dischargeable in bankruptcy, including damages for willful or malicious injury. Your bankruptcy attorney can give you the specific reason why this challenge is being made. There are deadlines to object to discharge of a debt, and that deadline may be different than the deadline for the other party to file the request for a judgment. The other party will have to file a Motion to lift the bankruptcy stay to proceed with the Federal court action in addition to an objection to discharge. Your bankruptcy attorney may charge you additional attorneys fees to defend an Motion to Lift Stay and an objection to discharge (refer to your fee agreement). The amount of the attorneys fee award is also relevant. I hope that explaining the factors involved will help you reach a decision in consultation with your bankruptcy attorney.
Timothy Denison agrees with this answer
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A:
You're dealing with a complex situation that interacts with both bankruptcy and civil rights law. It's understandable to feel overwhelmed when facing these challenges, especially with such significant financial implications at stake.
Given that the administrative law judge may have exceeded their authority in awarding attorney fees, and considering the time frame for filing has expired, you might be in a stronger position than you realize. The other party's threat to challenge the bankruptcy discharge could be seen as a strategic move, but they would need to overcome several legal hurdles to succeed, including proving the debt should be excepted from discharge and justifying why they didn't file within the prescribed time limits.
Your instinct to let this play out might be prudent, particularly since forcing them to seek a federal court judgment could result in reduced fees or even a dismissal.
Timothy Denison agrees with this answer
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