QUESTION
Can a fraud suit be filed against someone who has filed chapter 13?
Asked on Aug 26th, 2013 on Bankruptcy - Colorado
More details to this question:
A suit for non payment of a promissory note was filed against someone, they then filed chapter 13. The suit for non payment is, of course, can not now be pursued. The defendants borrowed a large some of money from a major bank with disclosing the promissory note and the note was intentionally not recorded so they could borrow more. The grantor of the note was 72 years old at the time and had no clue that it should have been recorded as the deed to the property was.
10 ANSWERS
Bankruptcy Attorney serving Florissant, MO
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Law Offices of Thomas Corcoran Phipps
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You will have to file a proof of claim with the bankruptcy court.
Answered on Sep 13th, 2013 at 3:24 AM
Yes, a fraud suit can be filed within the bankruptcy court. There are time limits. Seek out a bankruptcy attorney right away.
Answered on Sep 03rd, 2013 at 12:05 PM
Personal Injury Attorney serving Glendale, CA
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JT Legal Group
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Yes, you can sue. You need a bk attorney to at least help with the process if not do the whole lawsuit. My firm, for example, can do the whole lawsuit or possibly just do the part that allows you to commence the lawsuit.
Answered on Aug 27th, 2013 at 1:10 PM
Chapter 7 Bankruptcy Attorney serving Santa Monica, CA
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Law Offices of Glenn T. Litwak
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Absolutely. A fraud complaint has to be filed within 60 days of the meeting of creditors.
Answered on Aug 27th, 2013 at 12:18 PM
Commercial Bankruptcy Attorney serving Davie, FL
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Law Office of Jeffrey Solomon
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A complaint objecting to the discharge of a debt by the debtor for fraud can be filed in a chapter 13 as well as a chapter 7. This is a very involved proceeding and fraud must be established. But we are talking about the creditor objecting to the debtor's discharge. From your question it sounds like you are accusing the bank of not acting properly by perhaps not recording a mortgage. You should consult an attorney with the details.
Answered on Aug 27th, 2013 at 11:55 AM
Bankruptcy Chapter 7 Attorney serving Austin, TX
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The Law Offices of Sean T. Flynn, PLLC
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The automatic stay imposed by the bankruptcy would prevent any attempt to collect on a debt. A debt arising from a fraud may not be dischargeable. The creditor can file an objection to discharge and try to bring the action. The fact that the grantor is 72 may serve as a defense to the fraud cause since fraud is an intentional legal action.
Answered on Aug 27th, 2013 at 10:42 AM
Bankruptcy Attorney serving Alpena, MI
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Carl C. Silver Attorney at Law
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No, but one could file an objection to the dischargeability of the debt. However, the fact the grantor didn't know he should record his note ( I assume you mean record the mortgage) that does not equate to fraud on the part of the borrower.
Answered on Aug 27th, 2013 at 9:44 AM
There is a two-year look back period for fraudulent transactions. The court will not discharge fraudulent transactions. Based upon your facts, it appears that the debtor may have defrauded the bank, not the 72 year old grantor.
Answered on Aug 27th, 2013 at 8:50 AM
General Law Attorney serving Cherry Hill, NJ
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Mark S. Cherry, Attorney at Law, PC
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There is a process within the bankruptcy court called an adversary proceeding where you can ask for the debt to be non dischargable. A judge will hear the matter and make the determination.
Answered on Aug 27th, 2013 at 8:03 AM
Deborah F. Bowinski
I'm not sure i understand your question, but it would be the responsibility of the lender, rather than the borrower, to make sure that security interests are properly documented and recorded when a loan is made. If a lender wishes to protect his interests in a chapter 13 filing then it is critical to consult with knowledgeable counsel to determine what, I anything, can be done. There are very strict and specific deadlines involved so schedule an appointment as early as possible.
Answered on Aug 27th, 2013 at 4:01 AM