Adoption agency's bankruptcy raises questions for families | The Law Offices of Dorie A. Rogers, APC
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Adoption agency's bankruptcy raises questions for families

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When a family makes the choice to change a child's life forever by adopting, they rarely think that the process could be derailed by the financial woes of the adoption agency. Unfortunately, this is a very real possibility, as thousands of families recently discovered after a nationwide adoption agency entered bankruptcy earlier this year.

It is unfortunately very unlikely that the families will be able to recover the adoption fees and other expenses they have already invested in. The dream of growing their families, there are still steps they can take to protect their rights.

The first step is to file an official proof of claim against the agency. As the agency proceeds through bankruptcy, a trustee will want to know who has been affected by bankruptcy and will provide an official framework for any reparations, if they become available. The family should also follow along closely with the bankruptcy to ensure that they are considered in any further legal actions and to help keep others in the same situation apprised of any developments.

These families should also reach out to the Department of Social Services to inform them of the situation and get any available help the department can offer, specifically in recovering paperwork related to adopting. If and when they choose to try adoption again, it will be a great blessing to not have to repeat creating many of the required documents.

Finally, these families should examine the availability of the adoption credit that the Internal Revenue Service offers for families who adopt. if the child they sought to adopt was a citizen of the United States, the credit will still apply, lessening the blow of sunk adoption costs.

This type of experience can be devastating, but you do not have to walk though it alone. The guidance of an experienced attorney can ensure that you and your family keep your rights protected and are able to make the most of a difficult season.

Source: Consumerist, "What Can You Do When Your Adoption Agency Goes Bankrupt?," Mary Beth Quirk, March 07, 2017

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