Rule 7068 Offer of Judgment

Federal Rule of Civil Procedure 68 applies to adversary proceedings in bankruptcy court. An adversary proceeding is a lawsuit filed within a bankruptcy case, such as when someone sues to recover money or to dispute a debt.

Rule 68 allows a defendant to make a formal written offer to settle the case for a specific amount. If the person suing rejects the offer and then wins less money at trial than what was offered, they may have to pay the other side's court costs from the time the offer was made. This rule is meant to push both sides to think seriously about settling before going all the way to trial.