How to Respond to a Frivolous Lawsuit

Unless you’ve had your head in the sand, you’ve probably heard reports of at least one frivolous lawsuit in your lifetime. Some people today are quick to sue, even when a lawsuit is not warranted. If you have found yourself on the receiving end of a frivolous lawsuit and/or a litigious friend – you’re not the first. It has happened to many people before you. Although this may not bring you great comfort, just know that you are not alone, and you are not the first to be wrongfully sued.

If you have been sued for something that you ultimately didn’t do or aren’t responsible for, your first reaction may be to panic. Luckily, you can relax. It can be shocking and upsetting at first, especially if the plaintiff is (was?) a friend of yours. Once the initial shock wears off, you probably want to know what you should do.

First things first: It’s important for you to understand that if you’ve only been threatened with a lawsuit, the majority of these type of threats go unfounded and it’s likely that you will not end up being sued. If a lawsuit has been brought against you, it does not mean that you’re guilty of doing anything wrong.

What is a Litigious Person?

Litigious people react to situations that make them mad or upset by taking the offensive position. They are more likely to initiate lawsuits than the average person. Oftentimes, these people are found to be insecure and unsure of themselves. They may feel easily wronged or targeted. Conversely, some litigious people are full-grown versions of the bully that we all knew and avoided in elementary school.

As long as it remains simply a threat, you have nothing to worry about (legally), and the best advice would be to steer clear of this person indefinitely (if not permanently). However, if they have taken action and filed a lawsuit against you, it’s time for you to do something about it.

Again, remember to remain calm, especially if this is a lawsuit that you know developed out of frustration or desperation. Remind yourself that the person you’re dealing with is likely lonely and possibly deserves your sympathy. Make an attempt to settle out of court (if there is anything to settle); show this person that you regret any misunderstanding. That may be all it takes for them to drop the case.

What are my Options? I’ve Done Nothing Wrong!

On the other hand, if the person you’re dealing with is acting out in anger, aggression or vindication, it is probably a good idea to consult with a local attorney. If you know a NJ attorney who can give you some advice, ask to drop by his office one day soon for a consultation. Most NJ lawyers will give you a free one-time consultation.

If you don’t know any lawyers in New Jersey personally, perhaps a friend can refer you to an attorney they trust. Run the details of the lawsuit by the lawyer you decide to meet with. It is almost certain that you’ll be advised that this is a frivolous lawsuit. This means that it has no legal merit. Believe us when we say that no New Jersey court likes or caters to frivolous litigation.

Your attorney can help you get the case settled (with the help of mediation) or dismissed (via Motion to Dismiss). If the lawsuit truly has no legal basis, it will more than likely be dismissed by the court without the need for you to even file an Answer.

 

Should I File for Bankruptcy Before or After my Medical Procedure?

If you plan to file for bankruptcy and you also have plans to undergo a medical procedure, you will most likely benefit from delaying your filing until after you have had your procedure. Bankruptcy only discharges debt incurred prior to filing; if you first file for bankruptcy and then add medical bills incurred at a later date, those medical bills will not be covered by your existing bankruptcy agreement, even if you are unable to pay your medical bills.

Medical debt is eligible for forgiveness under both Chapter 7 and Chapter 13 bankruptcies, which are the two most common types of individual bankruptcy filings. Chapter 7 bankruptcy is a complete forgiveness of debt, whereas Chapter 13 bankruptcy includes a plan for partial repayment of the debt and forgiveness of the remainder. Which type of filing is best for you depends on your income, amount of debt, and types (and the value of) assets you have in your possession.

It is generally inadvisable to generate debt with the intention of having it forgiven through bankruptcy; it can be determined that the additional charges were incurred fraudulently, and such debt will be exempt from the bankruptcy agreement. If you’re about to petition for bankruptcy, it would be unwise to go on a shopping spree or take off on a blowout Vegas vacation, for example. However, medical bills are not subject to this type of scrutiny. There’s no cap or limit on how much medical debt can be forgiven in a bankruptcy.

There is, however, a limit on how often one can file for bankruptcy. The number of years varies, depending on the type of bankruptcy filing and how the debt was discharged. If you have previously had debt discharged in a Chapter 7 filing, you must wait eight years from the date you filed for that bankruptcy before you can qualify to file for another Chapter 7 bankruptcy. If you filed a Chapter 7 and now wish to file for a Chapter 13, there must be at least four years between your Chapter 7 date of filing and your new Chapter 13 case if you are looking to discharge more debt.

These are just a few examples, but as you can see, no type of bankruptcy filing can be arranged back-to-back to cover new debts, medical or otherwise. This means that if you file for bankruptcy, then incur more medical debt, you’ll be saddled with it until you can pay it, or until enough years have passed that you can qualify to file for an additional bankruptcy discharge.

You will have the option of filing for a Chapter 13 bankruptcy before four years have passed since your Chapter 7 discharge, but only if you are looking to reorganize your remaining debts. These remaining debts cannot be discharged for another four years.

Finally, if you are currently receiving ongoing medical care that will be resolved in a matter of months, it is most likely advisable to wait until your course of treatment is complete before filing for bankruptcy. The debts incurred during your treatment can all be included in your bankruptcy filing, and will be eligible for complete forgiveness.

 

Image: “Medical/Surgical Operative Photography” by Phalinn Ooi – licensed under CC by 2.0