QUESTION
What will happen if I decide to file for chapter 7 bankruptcy for fraud money?
Asked on Aug 23rd, 2011 on Bankruptcy - Georgia
More details to this question:
I was defrauded out of 1.2 million and have been fighting for 2+ years. My money problems are starting and I owe almost 900K of the stolen money, 200K in lawyer fees. The vendors and bank are losing their patience. Chapter 7 seems the only way. What will that decision do to the case?
8 ANSWERS
For that amount of money, you can be sure the claimants will file for nondischargeability. If you were a party to the fraud, you can be held accountable, even if you feel you were duped. If you are lucky you will find an excellent attorney who can guide you through this and you might get out unscathed. But do not count on it.
Answered on Sep 07th, 2011 at 6:51 AM
Debtor's Rights Attorney serving Atlanta, GA
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Theodore N. Stapleton, P.C.
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Certain debts are excepted form a bankruptcy discharge including debts arising out of a fraud.
Answered on Aug 25th, 2011 at 12:34 PM
Bankruptcy Attorney serving Concord, CA
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William Rubendall Attorney at Law
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If you have committed fraud it can be determined to be nondischargable in bankruptcy. If you have been defrauded the right to sue is owned by the trustee, subject to certain exemption limits.
Answered on Aug 24th, 2011 at 7:21 PM
Consumer Bankruptcy Attorney serving Worcester, MA
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Law Offices of James Wingfield
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If you are the victim the a fraud and as a result you owe money you can certainly file a bankruptcy to discharge your debts. You should be aware that the case in which you are the plaintiff will become the property of a Chapter 7 bankruptcy trustee (assuming you qualify for a Chapter 7 case). In other words, while you will be free of debt at the end of the case, you may no longer have the ability to collect in the event that there is an eventual judgment in your case, as that the judgment or settlement will be used to satisfy creditors.
Answered on Aug 24th, 2011 at 6:15 AM
Debts obtained by fraud are generally non-dischargeable in bankruptcy. The relevant bankruptcy code section(s) is 11 U.S.C. 523(a)(2) and (4). Generally, creditors must file a lawsuit or adversary proceeding in the bankruptcy proceeding and request that the court make a finding of fraud and orders that the debt is non-dischargeable. Don't wait, schedule an appointment to speak to an attorney.
Answered on Aug 23rd, 2011 at 6:50 PM
Bankruptcy Attorney serving Herndon, VA
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Maureen O'Malley
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If you owe money obtained fraudulently, you can't discharge it. Look at your retainer agreement with your lawyer and see if there's a lawyers' lien on your recovery. If so, that may also be non-dischargeable. I suggest you find BK counsel as this needs extended discussion.
Answered on Aug 23rd, 2011 at 6:49 PM
Glen Edward Ashman
The answer depends largely on whether you are the victim or are accused of complicity. You want to see an experienced lawyer to know if this is an option or not.
Answered on Aug 23rd, 2011 at 6:48 PM
2 Awards
If you were defrauded, it will have no bearing on your bankruptcy case. It is only if you allegedly committed the fraud that you may have an issue.
Answered on Aug 23rd, 2011 at 6:48 PM