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socrateaser
socrateaser, Attorney
Category: Bankruptcy Law
Satisfied Customers: 38452
Experience:  Attorney and Real Estate Broker -- Retired (mostly)
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I live in Idaho and have a huge judgment against me that will

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I live in Idaho and have a huge judgment against me that will put me into bankruptcy, chapter 11.
If I file a breach of contract suit in federal court against a party in Montana, then file bankruptcy in Idaho a week later, will the Idaho bankruptcy judge hear the matter filed in Montana? (judgment is in favor of MT defendant)
Hello,

The bankruptcy court will not hear the breach of contract action. The reason for this is that the U.S. Supreme Court, just last week has determined that there are a multitude of cases which bankruptcy court judges have heard in the past, which may not now be heard in bankruptcy court. See Stern v Marshal, No. 10-179 (U.S. Sup. Ct., June 23, 2011) (bankruptcy court does not have the constitutional authority to issue a final and binding decision on a claim based exclusively on a right assured by state law).

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!

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Customer: replied 5 years ago.
I don't know if this will help, it was a WY LLC not licensed in MT, run by a MT promoter/conman, illegally selling shares in the WY LLC and lying about the ownershp of a patent---a clear violation of the 1933 and 1934 federal securities laws. Everything has run out limitations wise, but it is a continuing crime--they collect money every month and use the CA Sheriff to collect for their fraud. (leases on buildings I own in CA) Much was concealed, some of it by the judge fabricating a protective order that concealed felony perjury and fraud on the arbitration.

Any thoughts?
If the lawsuit is for "breach of contract," then that is most definitely a "right assured by state law," and it cannot be heard by the bankruptcy court. If you are suing for 10b-5 federal securities fraud, then that's a federal cause of action which can be heard by the bankruptcy court.

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!

socrateaser and 3 other Bankruptcy Law Specialists are ready to help you

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