Sacramento Bankruptcy Lawyer Rick MorinNot everybody knows that a significant amount of litigation occurs in the bankruptcy courts in Sacramento. I represent both debtors and creditors in these “adversary proceedings.” Have you been sued by Sheri Carello? Below is some important information for you to consider.

Why am I Being Sued by Sheri Carello?

Sheri Carello is a Chapter 7 bankruptcy trustee in Sacramento. The bankruptcy court assigns her to oversee Chapter 7 cases on a random basis.

Ms. Carello represents the interests of the creditors in bankruptcy cases. She can take legal action against individuals and entities when she believes that she can recover money or property for the benefit of creditors in a bankruptcy.

While it might appear that Ms. Carello is suing you under her own name, she actually is suing on behalf of the bankruptcy estate to which she has been assigned. If you are sued by Ms. Carello, it is important to note that it is not personal. She is just doing her job and following the bankruptcy rules and laws to maximize the recovery for the creditors.

You Have Limited Time to Respond to the Complaint

An adversary proceeding in the bankruptcy court is started by the filing of a formal complaint. The complaint will be assigned its own independent case number. But the case will be attached to the underlying bankruptcy proceeding.

In the Eastern District of California, a defendant in an adversary complaint has just 30 days from the date the summons is issued to respond to the complaint. This is different than most other court procedures. Usually the defendant has a certain amount of time to respond after the complaint is served. In the bankruptcy court, the clock starts ticking once the summons is issued by the court itself.

Bankruptcy procedures are usually more streamlined than procedures in other courts. This is why there is a tighter deadline for a defendant to respond. In any event, don’t miss your 30 day window. Failing to respond to the complaint will mean that the defendant automatically loses the adversary.

Bankruptcy Litigation is Very Similar to District Court Litigation

Some people incorrectly assume that an adversary proceeding in the bankruptcy court isn’t very important. This could not be further from the truth. Both the federal rules of evidence and federal rules of civil procedure apply. In some cases, these rules are modified by the bankruptcy rules. For the most part, any federal litigator will feel right at home in the bankruptcy court.

In most cases, the bankruptcy courts can try matters to a final resolution, issue judgements, and can even sanction parties.

Have you been sued in a Bankruptcy Court adversary proceeding? Call my office at (916) 333-2222 to discuss your legal options. Don’t delay.