How To Determine Whether To File A Claim In Bankruptcy

Law360, New York (December 18, 2013, 3:05 PM EST) -- While any creditor has the right to file a claim, it is not always necessary, nor is it advisable in every situation. As an initial matter, Federal Rule of Bankruptcy Procedure 9011 should always be kept in mind when deciding whether or not to file a claim, as a claim may only be filed if it can be filed in good faith.

Bankruptcy Rule 9011 allows the court discretion to sanction an attorney who files frivolous pleadings in a bankruptcy proceeding in bad faith. An attorney...
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