Debtors Sanctioned For Untimely Response

May 4th, 2009 by Reed Allmand

In the Chapter 13 bankruptcy case of Rodriguez, Jose H. and Irene M.; In re (Rodriguez v. Select Portfolio Services Inc.), the bankruptcy court sanctioned the debtors, ordering them to pay the creditor’s attorney’s fees for failing to respond to discovery requests and requests for admission in a timely matter. .

The details of the bankruptcy case:

The debtors filed for Chapter 13 relief after the defendant initiated foreclosure proceedings. After the bankruptcy was filed, the debtors failed to timely respond to the defendant’s motion for stay relief, which resulted in the relief being granted by default… The debtors asked the court to extend the deadline for responding to the defendant’s discovery requests after the deadline had passed. The defendant asked the court to impose sanctions. The court agreed that the debtor’s failure to timely respond to the discovery requests and to adhere to the Scheduling Order warranted the imposition of sanctions.

It should also be noted that the bankruptcy court agreed that the debtors had valid concerns and complaints about the creditor; but because they failed to respond to the creditor in timely manner, the debtors faced sanctions. As we have mentioned many times on this blog, bankruptcy proceedings can become complicated. Attempting to navigate the bankruptcy system, with all of its rules and schedules without the help of a professional bankruptcy attorney can be financially dangerous. In this case the, the debtors’ failure to adhere to the bankruptcy Scheduling Order, cost them money. Don’t let this happen to you. If you’re considering bankruptcy, speak with a Dallas-Fort Worth bankruptcy attorney today.