Legal Question in Bankruptcy in California
Judgement in a fraud case
If I were to win a judgment in a fraud case and the defendant ended up filing for bankruptcy, could I still collect? I know bankruptcy protects against most debts, but is fraud considered willful and malicious so not protected?
2 Answers from Attorneys
Re: Judgement in a fraud case
The BK court may order a separate hearing to determine whether or not it was fraud. Contact me directly.
Re: Judgement in a fraud case
You would have to file an adversary in the bankruptcy proceeding. But plan ahead. Fraud is exempt from BK discharge. Make sure you obtain a special verdict in state court if you allege claims in addition to fraud, so that the judge and/or jury finds that you were defrauded. It's worth the extra work to save a lot of time and aggravation in bankruptcy court.
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