Regarding the business bankruptcy for pending disloved corporation MEI. That is what I thought. Therefore the best alternative is a personal BK at this time?
Response 1: Yes, that is correct.
Some other questions:
1. You mentioned:
However, there is a slight possibility that some of your creditors may file objection to your bankruptcy case. If this happens, the creditors would use the bankruptcy forum to litigate their disputes with you. In any event, in light of your situation, bankruptcy filing is still your better option.
a. We feel strongly this will happen and they will use all their discovery to convince the Trustee to exclude this case.
b. Therefore, wouldn't it be better to settle this case with a judgment and then file fo BK protection??
Response 2: Yes it would be better. However, the judgment creditors may object to the dischargeability of their debts/judgment. However, there is a strict deadline to file objections to dischargeability of debts and if the creditors do not file objection within that time frame, they have forever waived their rights to object in the future. The deadline to file objection is 60 days from the Section 341 Meeting.
If I file now, then it may not include any other items that could come out of the judgment.
Response 3: Point well taken. See my previous response-Response #2 above.
2. Regarding Deposition
The deposition is scheduled for Friday 3-12-10. They are probing for where the money went and a court has grated a motion to compel for items that I indicated was privileged personal information.
If I file BK this week, then how will this look to the trustee and will this deposition be allowd during the BK.?
Response 4: If you file for bankruptcy this week, the deposition would be suspended. Then the Plaintiff/your creditor would then have to file a Motion from Relief from the Automatic Stay from the bankruptcy Court for permission to continue with the non-bankruptcy Court case. The bankruptcy trustee does not have anything to do with your non-bankruptcy Court case. It would be up to the Plaintiff to file adversary proceeding in the bankruptcy Court or to ask permission to continue with the non-bankruptcy Court case. This Motion for Relief from the Automatic Stay must be granted before your deposition can resume.
3. Are there any links I can look at to see what is protected under california law for BK??
Response 5: I am assuming here that you are talking about exemptions--what you are allowed to keep. Here are the links:
Edited by AttorneyPhillips on 3/7/2010 at 5:32 PM EST