Personal Bankruptcy which court can hear bankruptcy cases

Status
Not open for further replies.

joe_jones

New Member
A plaintiff was upset about the amount the bankruptcy court was
allowing him to be paid. The plaintiff had won a malpractice lawsuit 3 years after a hospital went bankrupt and now
feels the revocable malpractice trust fund owned by the hospital should
pay him 100% of the judgement because it had enough money in it to pay the judgement before
the hospital drew it down to use the money to pay other debtors prior
to being forced into bankruptcy.

the plaintiff pulled out of the settlement discussions with the bankruptcy
trustee and filed a state court lawsuit against the trustee and several state
residents for conspiring to spend the money in the trust fund on hospital
debts instead of having it available in the trust to pay his debt(malpractice judgement
awarded 3 years after the hospital went bankrupt and closed). The Bank
who was the trustee has requested the federal bankruptcy court to have the
state court lawsuit moved back to his court. Can the Federal judge make that
happen?? The judge has had a hearing and ordered everybody to be served in
10 days( The bank trustee was already served in the lawsuit between the
plaintiff and the trustee and the plaintiff jointed that lawsuit initially with the
main bankruptcy lawsuit settlement and then pulled out of the settlement and
filed the same lawsuit in state court naming state residents which according
to the trustee lawyer was something the plaintiff only did in order to get the'
case into state court) The state residents were not served even though the
judge ordered that they be serve in 10 days. Its been a month. As a result of the Bank lawyer request for "removal" the judge has ordered the trial to be held in May regarding the initial lawsuit filed against the bank trustee that had
been joined into the main bankruptcy lawsuit. Should the residents named in the state court lawsuit be concerned and has the scheduling of this federal
bankruptcy trial in affect made it impossible for the state trail to go forward??

I know at least I have been told that the federal court is the only court that
can hear a lawsuit that is associated with a bankrupt defendant. The same lawyer who told me that also told me that since the residents have not been
served in the 10 days then they could not now be served and that since they
haven't been served in the fed lawsuit in 10 days and the state lawsuit is the same lawsuit in essence then they can't be served in the state lawsuit either. The lawyer said that there would be no trial to determine that the fed
judge should be allowed to move the lawsuit back to fed court because the mere request by the bank trustee lawyer to the fed court to have the state
lawsuit moved back to the fed court meant it would be moved back. the lawyer also told me that was why the plaintiff lawyers didn't choose to even
attend the hearing that the fed bankruptcy court had to review the request
by the trustee lawyer to have the "removal" request considered by the fed
bankruptcy judge. Is this lawyer right in what he has told me???? It's been
3 months since the state court lawsuit was filed and nobody has been served
How long can nobody be served and the case not be dismissed. I am one of
the residents and until it is closed I worry about getting served. Can anybody answer any of these questions.
 
Status
Not open for further replies.
Back
Top