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socrateaser
socrateaser, Attorney
Category: Bankruptcy Law
Satisfied Customers: 34462
Experience:  Attorney and Real Estate Broker -- Retired (mostly)
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I had a civil rights suit against a former employer that had

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I had a civil rights suit against a former employer that had been fully briefed in the court of appeals then the company filed a chapter 11 bankruptcy before the case had been ruled on. An automatic stay was placed on the case because of this. I filed an unsecured claim because the case had not been ruled on by the court of appeals. Does the fact that they are in bankruptcy automatically close my case or do I have to wait until the bankruptcy is dismissed or discharged in order to be able to continue with my case. Furthermore the company reorganized sold off some of their assets and are operating under a new name.
Submitted: 3 years ago.
Category: Bankruptcy Law
Expert:  socrateaser replied 3 years ago.
Your case is stayed, not terminated. You could have moved (and still can move) for relief from the automatic bankruptcy stay, if the appellate court's ruling would change your rights in the case in a manner that would affect your rights in bankruptcy (e.g., if you would prevail on a claim of fraud, which could be made nondischargeable in bankruptcy).

The issue you must resolve is whether or not obtaining a lift of stay would ultimately change your rights in bankruptcy. If yes, then move for a lift of stay -- otherwise, there's no point, because you would just be throwing good money after bad.

Hope this helps.

socrateaser, Attorney
Category: Bankruptcy Law
Satisfied Customers: 34462
Experience: Attorney and Real Estate Broker -- Retired (mostly)
socrateaser and other Bankruptcy Law Specialists are ready to help you
Customer: replied 3 years ago.
will I have to change the case name when the BR is discharged because the company name is XXXXX XXXXX they have set up a fund in a new confirmation plan that seems to exclude such claims as mine. This has been very hard to understand. Also are you saying that no matter what they do in this bankruptcy(CH 11) that I can continue to pursue my case once it is discharged.
Expert:  socrateaser replied 3 years ago.
I don't know the status of your case, so it's difficult to state anything definitively.

If the debtor's Chapter 11 plan is confirmed, and the debtor completes the plan, and you are listed as a creditor, then your claim will be discharged and your appeal rendered moot. As a creditor, you have the opportunity to object to your treatment under the plan, or request that it be dismissed entirely, before the plan is confirmed. If that opportunity is passed, then you are now at the mercy of the plan and the debtor's ability to complete that plan.

If the opportunity has not passed, then you could ask the court to lift the stay so as to allow the appeal to be resolved -- but, the issue remains as to whether the appellate court decision would actually change anything in bankruptcy -- whether the only real issue is whether or not the debtor can pay its debts (assuming that there is no credible proof of fraud concerning your case). If there is fraud on the table in the appeal, then that can be used to defeat the discharge of your claim, and that means that your strongest legal move is to move to lift the stay so as to try to get the appellate court to hold that you were defrauded.

Otherwise, you're probably toast.

Hope this helps.

Customer: replied 3 years ago.
Thank you it is worth a try. This is the best and most honest answer I could get anywhere. I am forever grateful. Atleast I know what to expect now. Win loose or draw. Are you allowed to advise me on how to go about doing that? As far as I know I am not listed as a creditor in the new plan atleast when I looked at the listed names of creditors I did'nt find mine. I'll look again...... If there is a problem with you tip let me know something weird happened with paypal. Thank you much.
Expert:  socrateaser replied 3 years ago.
You can put my userid (socrateaser) on any new questions, and they will be directed to me.

If you're not listed as a creditor, then did you file a proof of claim? If not, you may want to do that, so that you receive notice of the proceedings. Also, if you haven't done so already, then you need to subscribe to PACER, so that you can see all of the case files.

There are limits to what I can do in this forum. And, I cannot take your case. But, if you have specific questions, feel free to ask. Otherwise, you need to hire a lawyer to represent your interests before the bankruptcy court.

Hope this helps.

Customer: replied 3 years ago.
in my case the MSPA the new buyers assumed all responsibility for my claim in the assumed liability clause but in the SOPA they only assumed partial liability under the assumed liability clause in the agreement which allows me to pursue judgement from the new buyers but not collect any monetary releif if granted by the appeals court of which I have a civil claim. Both the sellers and the buyers are trying to get me to change the name of the case to the new buyers but if I do that I'm concerned that I could get a judgement in my favor but yet not able to collect on it and also I would not be able to pursue the sellers before the B/R is discharged because of the stay. Am I right? I filed the motion to be relieved from the stay because there is fraud on the table as mentioned in our previous communication as far as my appeal goes in the appeals court.
Expert:  socrateaser replied 3 years ago.
Yes, you're right. If there was a fraudulent transfer, i.e., the purchase of the business was for less than reasonably equivalent value, then the seller will have obtained money that could have been used to pay creditor claims. Dismissing the seller from the action is effectively permitting the seller to escape without liability (assuming seller did receive too much in exchange for the business assets or stock).

Hope this helps.


And, if you need to contact me again, please put my user id on the title line of your question (“ToCustomerrdquo;), and the system will send me an alert. Thanks!

Customer: replied 3 years ago.
Well Socrateser I'm not exactly sure if the seller received to much in the sale but it appears the MSPA and the SOPA contradict each other. The buyers have addressed the SOPA to the appeals court where I have a civil case(the SOPA allows for a judgement but no releif if granted) and the sellers have addressed the MSPA to the B/R court where I have asked for releif from the stay(the MSPA allows me to pursue the buyers and obtain a judgement and monetary releif if granted by the appeals court). It appears they are manipulating the courts with the different agreements in order to stop me from obtainf monetary releif in my appeal. Which one supersedes the other the MSPA or the SOPA?
Expert:  socrateaser replied 3 years ago.
It's a mixed question of fact and law. The agreements themselves may indicate priority. In the absence of any express indication, there's no easy answer. It's possible that they could run concurrently, or that one could supersede the other. I don't necessarily think that it's all that relevant, because the real issue is whether or not the collective acts and omissions of the former and successor owners have caused money to flow out of the business with the intent or effect of avoiding the payment your claim.

Not having the appellant court brief for review, makes my answer highly speculative. But, assuming that all of the evidence is before the court, it should have little difficulty in sorting things out.

Hope this helps.


And, if you need to contact me again, please put my user id on the title line of your question (“ToCustomerrdquo;), and the system will send me an alert. Thanks!

Customer: replied 3 years ago.

I was reading on a US courts site that in chapter 11, 12, and 13 cases, if confirmation of a plan or the discharge is obtained through fraud, the court can revoke the order of confirmation or discharge, would what happened in my case constitute fraud in the banruptcy?

I also told the court that I believe my case has been singled out because it's the only one of it's kind in the banruptcy.

Intentional Torts: Debts resulting from a willful or malicious act may not be discharged. Debts resulting from intentional torts and debts incurred by fraud are presumably dischargeable. In this type of situation, the creditor must file a request with the court to have the debt declared nondischargeable. I read this on a different site. I'm trying to figure out how this could help me. 1. They already have two plans MSPA and SOPA. and now they are tring to get the case name changed to the buyers because I didn't file a claim but the buyers can take partial responsibility for claim except for monetary damages. ( I'msorry Socrateser I'm comfused). 2. I asked the court to add the name of the buyers in stead of replacing the name because to do so would discharge my claim period because of the language in theMSPA and the language in the SOPA. The obligations of the SOPA have not yet been fulfilled.

Expert:  socrateaser replied 3 years ago.

I was reading on a US courts site that in chapter 11, 12, and 13 cases, if confirmation of a plan or the discharge is obtained through fraud, the court can revoke the order of confirmation or discharge, would what happened in my case constitute fraud in the bankruptcy?

 

A: A proved fraud on the court can cause the bankruptcy court to vacate the discharge order. However, a fraud in the bankruptcy petition is not the same as an adversary proceeding claiming fraud on a particular debt -- which is your circumstances. In such a case, if you don't sue the creditor to prove a fraud, and the bankruptcy court discharges the debtor, then your claim, fraudulent or not, will be discharged.

 

Hope this helps.

Customer: replied 3 years ago.

today I got a call from the court expressing the judge issued an order, they havn't received my reply to the debtors response to relief from the automatic stay I requested yet. The order is in favor of the debtors the order is to change the mane on the case and releive the debtors from responsibility and that's not what I want and I stated that in the reply I mailed yesterday it takes a few days for the court to recieve the reply the debtors filed their response this past thursday. Don't I haved a right to reply to the debtors response before a ruling is made?

also how long do the debtors have to respond to a motion filed becase it was thirty days before their reply was submitted to the court and how long do I have to submit a reply? Oh and how long do I have to file an appeal to the order today?

Expert:  socrateaser replied 3 years ago.
Note: This Q&A session has exceeded the scope of the original question. Please consider Accepting again.

Don't I haved a right to reply to the debtors response before a ruling is made?

A: No. There is no such right. If you don't get your reply in before the judge rules, then you're SOL.

Also how long do the debtors have to respond to a motion filed becase it was thirty days before their reply was submitted to the court and how long do I have to submit a reply?


A: Opposition papers must be filed within 21 days. Reply papers have no deadline unless ordered by the court, in which case, 21 days for a Reply.


Oh and how long do I have to file an appeal to the order today?

 

A: An appellant has 14 days to file a notice of appeal to the District Court or Bankruptcy Appellate Panel (if applicable in the circuit).

 

Hope this helps.

 

 


And, if you need to contact me again, please put my user id on the title line of your question (“ToCustomerrdquo;), and the system will send me an alert. Thanks!


 

Customer: replied 3 years ago.

Can I object to the order? and how long do I have for that? The order is for me to be able to change the name however and to remove the other party it's not and order ordering me to change the name on the case.

Expert:  socrateaser replied 3 years ago.
You can't object to the order. The court has already ruled. You have 14 days to file a notice of appeal , pursuant to Fed. R. Bankr. Proc. Part VII. This is not an easy process, but it's the only one available.

Hope this helps.
Customer: replied 3 years ago.
Ok. I need to know if the MSPA and the SOPA are supposed to be the same? if they are not the same were the debtors supposed to file with the court and ask for an amendment to the MSPA before changing the wording in the SOPA.
Expert:  socrateaser replied 3 years ago.
Please click Accept for my previous answers, and I will be happy to consider your new question.


And, if you need to contact me again, please put my user id on the title line of your question (“ToCustomerrdquo;), and the system will send me an alert. Thanks!

socrateaser, Attorney
Category: Bankruptcy Law
Satisfied Customers: 34462
Experience: Attorney and Real Estate Broker -- Retired (mostly)
socrateaser and other Bankruptcy Law Specialists are ready to help you

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socrateaser
socrateaser
Bankruptcy Lawyer
34462 Satisfied Customers
Attorney and Real Estate Broker -- Retired (mostly)