Hi, thanks for your question. You should hire a lawyer for specific legal advice. No attorney client relationship is created here.
First, bankruptcy stays all collection action, so the underlying suit would stop once the debtor files a case.
if it was before judgment, the creditor could object to the discharge in the bankruptcy case based on the fraud.
This would be called an adversary.
The matter would be litigated in the adversary, and if the creditor is successful, the debt would be non-dischargeable, and could then collect on the debt post-bankruptcy.
If the judgment is entered, and fraud is stated in the judgment order, then the adversary would be much easier to win, as the matter can't be re-litigated based on res judicata principles.
When the bankruptcy is filed, the debtor will get relief from creditors and stop suit etc, until the adversary is decided.
Let me know if you have any questions. Thnaks
Thanks. Two things.
Based on the example I described above. Can anyone like him go ahead to file bankruptcy protection? Usually, what is the ground to give such
Secondly, the plaintiff's complaint contains 1) Breach of contract and 2) Fraud. In default judgement, will these two counts be granted? If so, the judgement shall have stronger power even if the defendant files bankruptcy.
By the way, I prefer you response not in chat mode because we cannot easily get time together. You just answer the question and I will view it and then either reponse or rate it. Thanks.
Could you respond to the follow questions above?
Bankruptcy question and judgement collection
This question is related to my previous question I asked.
1) Can anyone just go ahead to file bankruptcy protection? Here I mean does the filing person have to show no net asset (i.e. owes more than owns)?
2) Regardless he files bankruptcy or not, if he gets a judgement with fraud charge, the collector may go after his retirement assets(excluding social security) which were funded by fraud revenue. Will this to be determined by judge? What if the amount of retirement assets funded by fraud revenue not clear? Will court decide that?
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