QUESTION

How would an AG consumer protection complaint play into my bankruptcy?

Asked on Jul 15th, 2015 on Bankruptcy - Michigan
More details to this question:
I shot a few weddings each year for the last 6 years. My wife got sick, we looking to file bankruptcy, 1 bride filed a complaint with AG consumer protection unit. Can AG comer after me after i include that debt in bankruptcy? what would AG office charge me with?
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5 ANSWERS

Commercial & Bankruptcy Law Attorney serving Powell, OH at Ronald K. Nims
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Unless the AG is going to file fraud charges, then any money claim would be stopped by the bankruptcy.
Answered on Jul 20th, 2015 at 1:03 AM

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Certain kinds of debt are excluded from the bankruptcy discharge. The Automatic Stay of bankruptcy does not stop the government from pursuing its 'police powers.' So they probably are permitted to investigate. If the acts complained of amount to fraud, and that is determined by a state agency or court, generally the debt will be nondischargeable in bankruptcy. If the complaint is merely that you were careless, it is dischargeable. If you took the bride's money and did not do the work, then the debt could also be a priority debt, which if you filed Ch. 13, must be paid in full. I think you very much need an experienced bankruptcy lawyer to help guide you through this problem.
Answered on Jul 15th, 2015 at 5:37 PM

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Bankruptcy Attorney serving Las Vegas, NV at A Fresh Start
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It would depend on the nature of the complaint. Bankruptcy does not eliminate debts that are considered criminal. For example, if you took money and failed to provide the service, it is possible that you would face a complaint for criminal fraud. Under that scenario, you would not be eligible to eliminate that debt in a bankruptcy.
Answered on Jul 15th, 2015 at 5:22 PM

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Appellate Attorney serving Grosse Pointe Farms, MI at Musilli Brennan Associates, PLLC
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That will be dependent upon the various issues which the AG consumer protection complaint makes. Herein what you are contemplating, I would suggest that you discuss all of this with a bankruptcy practitioner prior to the time you make any decisions.
Answered on Jul 15th, 2015 at 4:06 PM

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I have about 50 questions or more to ask before advising you. I would suggest you meet with an experienced BK lawyer to discuss your situation. It is full of legal pitfalls. Any lawyer worth their salt will charge you something for the consultation. You need to make some important decisions BEFORE you file. Now is not the time to skimp!
Answered on Jul 15th, 2015 at 4:06 PM

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