Full question:
My husband was in business with his brother. His brother took payments and other money from the company without the agreement of my husband. He also took distributions without my husband getting any distributions. This was against their operating agreement and fiduciary law. The subdivision that they had together as developers has since foreclosed and the bank has a 1099 and put a judgment against us for the deficiency. My husbands brother has since filed bankruptcy. His brother is aware that he owes my husband so he listed us as a debtor on his bankruptcy. We are going to have an audit done so we can get the exact amount that is owed to us. Our attorney says we need to file a complaint objecting to discharge by 5/11/09. Is this something that we have to have an exact dollar amount that is owed listed? Our attorney wants $1500 to start the 'complaint objecting' ...does it really cost that? And is there a form we can file ourselves to save on the $1500? Also if my husband ends up filing bankruptcy himself because of the deficiency what will that do to what is owed by his brother? Will the bankruptcy court take it?
- Category: Bankruptcy
- Date:
- State: Missouri
Answer:
Among other reasons, the court may deny the debtor a discharge if it finds that the debtor: failed to keep or produce adequate books or financial records; failed to explain satisfactorily any loss of assets; committed a bankruptcy crime such as perjury; failed to obey a lawful order of the bankruptcy court; fraudulently transferred, concealed, or destroyed property that would have become property of the estate; or failed to complete an approved instructional course concerning financial management.
If the creditor of a discharged debt continues collection attempts it is a violation of Federal Bankruptcy Law and subject to court sanction. A discharged debtor may send a letter telling the creditor that if it continues to try to collect funds that have been discharged under federal Law, an adversary proceeding against the creditor may be filed in the United States Bankruptcy Court. The letter should also enclose a copy of the discharge order. The bankruptcy court has the power to hold the persistent creditor in contempt of court. The court also may fine the creditor.
I am prohibited from giving legal advice, this service provides information of a general legal nature. The effect of your husband filing bankruptcy will depend on all the circumstances at the time of filing and it will be a matter of determination for the court, based on all of the facts involved. You may review the forms at the links below to determine if they suit your needs. An exact dollar amount is not necessarily required to be stated on the complaint. They may be filed without an attorney, but adversary proceedings may require legal expertise due to the complexity of the laws and procedures involved. I suggest you obtain quotes from other attorneys to compare rates. Hourly rates and billing practices vary by attorney.
This content is for informational purposes only and is not legal advice. Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.
