Playing the "bankruptcy card" as a tactic to gain leverage in litigation is nothing new to defendants. However, the threat of bankruptcy by a defendant, especially in today's economy, is something that should not be lightly dismissed by a plaintiff.
июля 21, 2010 at 12:00 AM
By Jerrold S. Kulback | Updated on июля 21, 2010
Playing the “bankruptcy card” as a tactic to gain leverage in litigation is nothing new to defendants. However, the threat of bankruptcy by a defendant, especially in today’s economy, is something that should not be lightly dismissed by a plaintiff. According to a recent news release from the Administrative Office of the U.S. Courts, bankruptcy filings for the 12-month period ending March 31, 2010, were up 27 percent over the prior year, the most since the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 took effect.
Before deciding to call a defendant’s “bankruptcy bluff,” plaintiffs attorneys must be mindful of their clients’ rights and liabilities should the defendant indeed follow through with such a threat. This is especially important in “bankruptcy-proofing” settlement agreements.
To view this content, please continue to their sites.
Not a Lexis Subscriber?
Subscribe Now
Not a Bloomberg Law Subscriber?
Subscribe Now
LexisNexis® and Bloomberg Law are third party online distributors of the broad collection of current and archived versions of ALM's legal news publications. LexisNexis® and Bloomberg Law customers are able to access and use ALM's content, including content from the National Law Journal, The American Lawyer, Legaltech News, The New York Law Journal, and Corporate Counsel, as well as other sources of legal information.
For questions call 1-877-256-2472 or contact us at [email protected]
