Seeking Sanctions? Consider the Timing and Recovery

Many cases have dealt with bankruptcy petitions filed in “bad faith.” Typically, a party in interest seeks to simply have the petition dismissed, and seeks no further relief. Infrequently, however, a party may make the difficult decision to seek the imposition of sanctions against a bad faith filer and his or her counsel to deter future abuse of the Bankruptcy Code. This article discusses two recent examples of these situations and some lessons should you ever be charged with the unenviable task of requesting sanctions against opposing counsel.

Reprinted with permission of the American Bankruptcy Institute.