Legal Question in Bankruptcy in California

bankruptcy claimed after fraudulent business activity...

Question:

Someone receives a large sum of goods from a manufacturer on credit, has them shipped out of the country and resells the goods. He claims they were damaged during transport and does not pay for the goods. He then files for bankruptcy and leaves the country. The manufacturer files a lawsuit against him but the case goes nowhere because he has fled.

Ten years later, he returns to the country. Can fraud charged be pursued against him after all these years?

Thank you.


Asked on 8/19/06, 10:11 pm

1 Answer from Attorneys
Robert F. Cohen Law Office of Robert F. Cohen

Re: bankruptcy claimed after fraudulent business activity...

The manufacturer can ask that the BK be reopened if closed, alleging that any statute of limitation was stayed in the person's absence from the court's jurisdiction. See Code of Civil Procedure section 583.340. The manufacturer could then ask for relief from stay, or have the bankruptcy court adjudicate the claim. Whether the manufacturer would succeed, I don't know.

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Answered on 8/19/06, 11:50 pm


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