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Terry L.
Terry L., Attorney
Category: Bankruptcy Law
Satisfied Customers: 2832
Experience:  Better Business Bureau. 18yrs bankruptcy experience. Chicago Bar Assoc. American Bankruptcy Institute member.
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I sold some Zumba DVDs on ebay that turned out to be fakes.

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I sold some Zumba DVDs on ebay that turned out to be fakes. Now I am being sued. I am unemployed, on Medicaid and get food stamps. I talked to a lawyer about filing bankruptcy but they advised me to wait at least 2 years because I had to sell my house for only what was owed on it. Can I include any judgement against me in a bankruptcy?

Terry L. :

Hi and thank you for your question. In the future, you can request me to answer any further questions.

Terry L. :

Yes, you would list all debts in the bankruptcy case. the issue is whether the debt would be dischargeable if the creditor objects. The answer is maybe. First, criminal debts & restitution are not dischargeable in the bankruptcy case. The other way for the creditor to attack the bankruptcy would be under 523 (a)(2)

Terry L. :

(2) for money, property, services, or an extension, renewal, or refinancing of credit, to the extent obtained by--



(A) false pretenses, a false representation, or actual fraud, other than a statement respecting the debtor’s or an insider’s financial condition;


(B) use of a statement in writing--



(i) that is materially false;


(ii) respecting the debtor’s or an insider’s financial condition;


(iii) on which the creditor to whom the debtor is liable for such money, property, services, or credit reasonably relied; and


(iv) that the debtor caused to be made or published with intent to deceive; or




 

Terry L. :

since there was false representation here, since they were fake items. Now, if you can prove you didn't know they were fakes, you may be able to defeat that. If you admitted to the fakes in the other case, or if you were found guilty of selling them, then you wouldn't likely succeed.

Terry L. :

You may want to consider negotiating a repayment plan on the debt if this is your only debt. if you have other debts, you can still file, but may need to pay back this if they object and it's found non-dischargeable.

Terry L. :

good luck, definitely work with an attorney on the bankruptcy case.

Terry L. :

thanks for your question

Customer:

I do not have a judgment against me yet. I received the papers in the mail last week where Zumba LLC filed a claim against me. Would I benefit trying to contact Zumba before it goes to court and see if I can working something out? It was filed in CA and I live in GA. I don't have money for a lawyer or money to appear in court in CA. What course do you suggest I take?

Terry L. :

This is a decision that you would need to make. I would suspect that if you file bankruptcy, they would object and win a nondischargability action. If you have no other debts, it may be best to see if you can settle the suit.

Terry L. :

You can file bankruptcy now, listing the debt, even if there is no judgment yet. The matter would be litigated then in your bankruptcy court, where you live.

Terry L. :

thanks for your question, good luck

Customer:

I also think Zumba would object to discharging the debt. I really don't see that I have anything to lose in trying to settle things with them out of court.

Customer:

I'm sorry I didn't get back to you and make payment until now. Thank you for your advice. I hope I never need you again but it's nice to know this service is available. Donna

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