Legal Question in Bankruptcy in California
post bankruptcy jurisdiction
Question: Can state court decide? Doesn�t their debt exceed limit for Chap 13 anyway?
1997 Discovered bookkeeper Young embezzled almost $400,000. from my elderly father�s business account.
1998 Filed civil action against Youngs in San Francisco County
1999 Youngs filed for chapter 13 bankruptcy dismissed 7/3/2000 for failure to follow plan
2000 Youngs filed new chapter 13 bankruptcy Aug 3 about which we never received notice
2001 We discovered 2nd bankruptcy filing, filed a late claim for $385,000. that bankruptcy court refused to accept because it was past deadline by one year
2002 Mrs. Young convicted of two felonies re embezzlement
Current, civil case has resumed, trial date set for Nov 2007, Youngs� lawyer says we have to reopen bankruptcy case to proceed in state civil case.
2 Answers from Attorneys
Re: post bankruptcy jurisdiction
Yes. I'm in the middle of a similar kind of bankruptcy adversary proceeding. A debt is not discharged because of the intentional injury to another "entity," which may be a person, corporation, etc. That includes theft/embezzlement, breach of fiduciary duty, etc. The fact that your father never received notice sets no deadline for reopening the BK, but it should be done as soon as possible after its discovery. Proceeding with the civil case, without leave of the BK court, could subject your father to severe penalties.
Re: post bankruptcy jurisdiction
Need more answers, such as was second case discharged? Was some related party noticed? What has been happening all this time? Criminal part is not precluded from proceeding because of BK.
Case could be reopened, discharge revoked, lot of things could be done. As indicated, your scenario leads to more questions.
Feel free to contact me to expand and see what can be done.
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