What happens if you forget to tell your bankruptcy lawyer about a pending lawsuit or even a pending claim? Nothing good – there is a very strong chance that the defendant can use your omission as a defense to your claim.
Massachusetts attorney Michael Goldstein writes about this issue in his Massachusetts Cyberlaw Attorney blog. In his blog post, Michael writes about a woman who lost the right to pursue a discrimination case because she failed to list the possible lawsuit as an asset in her bankruptcy case.
If you have a pending lawsuit or even a pending claim, there is a good chance that your trustee will take an interest in that claim as an asset of your bankruptcy estate. In Georgia, the trustee has the right to take over the claim in total, including the right to fire the lawyer you had picked and to settle the case without your knowledge or permission. Your only right to the case may be your declared exemption, which may only amount to a few thousand dollars.
If you have a case, whether or not a lawsuit has been filed, you need to advise both your bankruptcy lawyer as well as the lawyer representing you in your claim for damages. You most definitely do not want the nasty surprise of learning that your bankruptcy filing has teminated or limited your right to recover money damages.