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When a debtor has filed a Chapter 11 Petition in Bankruptcy, he must make a list of all his creditors. Your name, as a creditor, should appear on that list. you or your attorney should send a letter to the Trustee in Bankruptcy, a person appointed by the Bankruptcy Court to inform them of your status as a creditor, and in this way, determine if the debtor included your name on the list of creditors which he filed along with his Petition in Bankruptcy.
However, if the debtor has included your name and the amount he owes you in his Petition in Bankruptcy, you will be included with the rest of his creditors and whaatever money the debtor has will be divided among all the creditors, and the claims will be "discharged in bankruptcy"
If the debtor has not included your name on the list of creditors, then the debt he owes you will not be discharged in bankruptcy and he will still owe you the full amount.
Unfortunately, neither the Bankruptcy Court or the Trustee in Bankruptcy will permit any payment because that would be a "Preference" and the rule is that all creditors listed in the debtor's Petition in Bankruptcy will be treated equally.
Once a debtor has filed a Petition in Bankruptcy, the Bankruptcy Court prohibits the debtor from paying any creditor to the detriment of the other creditors to whom the debtor owes money. In fact, if within 4 months of filing his Petitin in Bankruptcy, the debtor makes any transfer of money or anything else of value to someone, te Court will negate and reverse the transfer, unless the transferee can show that he gave the debtor good and valuable consideration for the transfer.
Additionally, the Bankruptcy Court prohibits the debtor from transferring anything of his out of the bankruptcy estate during the time he is under the jurisdiction of the Bankruptcy Court.
The Bankruptcy Court does not have jurisdiction (authority, power) bring crimial charges against the debtor, or to try him on those charges, even if there was fraud.
Your remedy would be to notify the Federal authorities of the fraud committed against you and they will have the power to prosecute him in Federal District Court.
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ANDREA Attorney at Law & Legal Expert