How to Stop a Bankruptcy Trustee from Claiming the Proceeds of a Lawsuit
If you file bankruptcy pro se, but have a pending lawsuit, is there a way to keep the trustee from taking over the lawsuit? A woman is in significant financial hardship following a wrongful termination, but didn't realize that her wrongful termination case would be subject to claims by the trustee when she filed Chapter 7 bankruptcy.
Re: How to Stop a Bankruptcy Trustee from Claiming the Proceeds of a Lawsuit
Her lawsuit is an asset of her case so, if she does not want the proceeds of any settlement or verdict applied to her debts, she would have to dismiss her case. If she wants to attempt to have her case dismissed she should consult a bankruptcy lawyer, as she must normally show good cause in order to be able to dismiss her bankruptcy case.