Author Box
Articles Categories
All Categories
Articles Resources

Bankruptcy Ends Privacy

February 22, 2012 | Comments: 0 | Views: 161

I am not a lawyer, I am a judgment matchmaker. This article is my opinion, and not legal advice, based on my experience in California. Laws vary in each state. If you ever need any legal advice or a strategy to use, please contact a lawyer.

What if you have a judgment against a "rich" judgment debtor with a history of moving from rental property to rental property, paying the minimum to obtain residence, and then staying rent free until they get forced out by evictions? (This does not happen very often anymore, in the age of credit reports and landlord associations, however a wad of cash upfront, can blind many landlords.)

What if you found out where the judgment debtor worked, garnished their wages, and then you got a notice from a US Bankruptcy Court, that your debtor has filed for Chapter 7 bankruptcy protection?

As soon as you got that bankruptcy notice, you should quickly tell the Sheriff to stop the wage levy. Once someone files for bankruptcy protection, you should not try to collect money from them without first getting permission from the bankruptcy court.

When your judgment debtor files for bankruptcy protection, is it game over, and your judgment is now history? If your judgment debtor is actually poor, yes. If your debtor is not poor, hiding their assets, and a crook; and you have the time to spend many hours in and out of a bankruptcy court, maybe not.

If you have nothing more important to do, you can examine crooked judgment debtors in bankruptcy court, even with a small judgment. If you are busy, this makes sense only on judgments averaging $15,000 or more. If your judgment debtor is really poor, let it go, do not waste time trying to squeeze juice from rocks.

To bring a judgment debtor's fraud and perjury to the attention of a bankruptcy court, requires filing an adversarial claim. If you are not a lawyer, you better know what you are doing, or better yet, hire a bankruptcy lawyer. When you hire a lawyer, do not put your brain on hold, keep thinking about what will help win your case, and give your ideas to your lawyer. Never assume your lawyer knows everything you know.

One might think the judgment debtor's history of defrauding landlords could be a basis for a fraud complaint in a bankruptcy court. I am not a lawyer, and my opinion is that if the debtor defrauded someone else, you will have a difficult time claiming fraud in the bankruptcy court; because you were not a party to the cause of action, and not personally defrauded by the debtor.

However, if you were the debtor's landlord, you might have a possible cause of action for rental fraud, stemming from the original debt under USC 523(a)(2)(b). To win such a motion, you will need to show some proof to the court.

To win a motion under USC 523(a)(2)(b), you would need to prove that the fraud was intentional, and that your debtor knowingly and willfully provided you with false information. Some items of evidence could be a rental application signed by your debtor, with fraudulent statements about their finances.

If the debtor's misrepresentations were verbal, perhaps you could prove fraud under USC 523(a)(2)(a), however proving that is usually much more difficult.

The first step to proving fraud in court is investigation. There are several paths available for the creditors of bankrupt debtors. When debtors file for bankruptcy protection, their financial privacy goes out the window.

The key to winning a bankruptcy complaint for fraud, is plenty of discovery and hard evidence proving fraud. The first step is to ask the attorney representing the bankrupt judgment debtor for the debtor's filing information and disclosures, asset and liability statements, and itemized listings of their monthly living expenses.

One idea, is to request copies of the debtor's tax returns at least 14 days before the first scheduled meeting of the creditors. You might ask for five years of state and federal tax returns, or the tax returns from a few years before and after the fraud occurred.

Depending on the response you get, you might decide to motion the court for a rule 2004 examination of the debtor and possibly some other third parties, perhaps right after, or before the first creditor's meeting.

If you have a dishonest debtor, they often try to stonewall and hide information from creditors. Once the debtor files for bankruptcy, creditors are entitled to access their financial information, so that you can thoroughly analyze their real situation.

If you are deprived from doing your discovery in bankruptcy court because of actions from the debtor, then you may have a cause of action for an adversary proceeding under USC 727, which costs about $300 to file.

Bankruptcy court can be a "heaven" for creditors with time, patience, and knowledge. Bankruptcy courts are not perfect, and many will not let mortals (non-lawyers) pay with a personal check.

Bankruptcy courts are usually more spacious and comfortable than state courts. Most filings and motions (except motions for relief and adversarial proceedings) have no filing fees. Cafeterias in bankruptcy courts are usually good and reasonably priced.

You may be able to get your debtor kicked out of bankruptcy court for either not providing you with the tax returns you requested, or possibly for a bad faith filing for not complying with the court's order to produce documents under a rule 2004 examination.

Depending on the size of your judgment, you may decide it is simply not worth filing an adversary proceeding. You may also find that your debtor really does deserve to file for bankruptcy protection because they showed you all the documentation you asked for, and you found no evidence of deceit or fraud.

http://www.JudgmentBuy.com - judgment enforcement. The easiest, fastest, and best way to get the most money for your judgment.

Mark Shapiro, the judgment matchmaker. We pay for judgment leads, and have the best quality free leads for enforcers, collection agencies and contingency collection attorneys.

Source: EzineArticles
Was this Helpful ?

 
0
 
0
 
Rate this Article
 vote(s)
Feedback
Print
Re-Publish

Article Tags:

Bankruptcy Privacy

,

Privacy And Bankruptcy

,

Bankruptcy And Privacy

,

Bankruptcy Discovery

Thus, you can apply for the negligence compensation under such circumstances in order to recover your loss, Negligence Claims, Negligence compensation Involvedness of Negligence Claims. The court

By: Simon Liva l Legal > Personal Injury l December 13, 2012 lViews: 291

If a lawyer is not able to devote enough time to your case then your defense is likely to suffer. Moreover specialization in one stream or other of defense is important so that the attorney can

By: Simon Liva l Legal > Criminal Law l December 12, 2012 lViews: 429

Filing a business bankruptcy can be a complex and critical task, but you have several options. You can consult your bankruptcy attorney to know which among those options is right for you.This is a

By: Harvard McIntosh l Legal > Corporations LLC l December 11, 2012 lViews: 235

You can always check for the treatments that are covered. This is because there are some policies which do not give you claims if you meet any kind of head injury.You can always check for the

By: Simon Liva l Legal > Personal Injury l November 05, 2012 lViews: 240

In Colorado, you have many Personal Injury Lawyers to choose from. When you choose the Law Offices of Andrew C. Bubb you instantly put years of experience and legal know how in your corner. Attorney

By: Dilshad l Legal > Personal Injury l October 25, 2012 lViews: 389

If you have been charged with a crime, speak with Boulder criminal defense attorney Steven Louth immediately to protect your rights. Steven Louth is a criminal defense attorney and criminal trial

By: Dilshad l Legal > Personal Injury l October 18, 2012 lViews: 243

Ideally, wage levies would always work, however in the real world, they often do not work. The first thing to check is, are wage levies allowed in your state? Most states allow wage levies. The first

By: Mark D Shapirol Legal > National State Locall April 24, 2012 lViews: 194

As important as how much money is in your judgment debtor's bank account is; much depends on the laws of your state. While a few states restrict or do not allow bank levies, most allow them. Bank

By: Mark D Shapirol Legal > National State Locall April 23, 2012 lViews: 221

Judgment liens attach to the identity of the person or the entity. Judgment liens usually attach to any properties they own now or in the future. The process for creating a judgment lien is usually

By: Mark D Shapirol Legal > National State Locall April 22, 2012 lViews: 211

When people first win their judgment, they are often very confident that their judgment can be sold for big bucks, or will quickly be collected in full. That confidence usually fades fast when they

By: Mark D Shapirol Legal > National State Locall April 21, 2012 lViews: 194

What if you won a lawsuit and have been awarded a civil money judgment, how do you collect your judgment? This article is a brief outline, with a simple overview of some common procedures to collect

By: Mark D Shapirol Legal > National State Locall April 20, 2012 lViews: 225

Judgment recovery is a very paperwork-intensive process, with many court and Sheriff-related legal documents required. Even though the documents, and how to fill them out can be confusing, you must

By: Mark D Shapirol Legal > National State Locall April 20, 2012 lViews: 254

Ideally, wage levies would always work, however in the real world, they often do not work. The first thing to check is, are wage levies allowed in your state? Most states allow wage levies. The first

By: Mark D Shapirol Legal > National State Locall April 24, 2012 lViews: 194

As important as how much money is in your judgment debtor's bank account is; much depends on the laws of your state. While a few states restrict or do not allow bank levies, most allow them. Bank

By: Mark D Shapirol Legal > National State Locall April 23, 2012 lViews: 221

Judgment liens attach to the identity of the person or the entity. Judgment liens usually attach to any properties they own now or in the future. The process for creating a judgment lien is usually

By: Mark D Shapirol Legal > National State Locall April 22, 2012 lViews: 211

When people first win their judgment, they are often very confident that their judgment can be sold for big bucks, or will quickly be collected in full. That confidence usually fades fast when they

By: Mark D Shapirol Legal > National State Locall April 21, 2012 lViews: 194

What if you won a lawsuit and have been awarded a civil money judgment, how do you collect your judgment? This article is a brief outline, with a simple overview of some common procedures to collect

By: Mark D Shapirol Legal > National State Locall April 20, 2012 lViews: 225

Judgment recovery is a very paperwork-intensive process, with many court and Sheriff-related legal documents required. Even though the documents, and how to fill them out can be confusing, you must

By: Mark D Shapirol Legal > National State Locall April 20, 2012 lViews: 254