Legal Question in Bankruptcy in California
property with bankruptcy
If someone is filing for bankruptcy and he has possesion of Mexican artifacts valued at approximately $1,000,000, but is under restraining order from the mexican govt., can the U.S. courts take possesion of the property?
2 Answers from Attorneys
Re: property with bankruptcy
If I understand your question correctly, the artifacts actually belong to the Mexican government or some other Mexican entity, and do not actually belong to the debtor. Is that correct?
If so, they would not seem to be an asset of the bankruptcy estate since the debtor does not own them. Your BK attorney would need to see the restraining order to determine exactly what is going on with that property. Make sure you bring it to his/her attention.
Re: property with bankruptcy
The answer depends on 1-Whether a judgment by a Mexican court would have any jurisdiction on a U.S Federal bankruptcy court or 2-Whether the mexican government itself is a claimant. Once you file for bankruptcy unless you file chapter 11, the property you declared on schedule B, becomes property of the bankruptcy estate. The U.S trustee is free to do with it in compliance with Federal bankruptcy law mandates. Given that this property is not exempt it would be liquidated and the proceeds distributed among creditors. Now if the artifacts in question are historical artifcats of which the mexican government lays claim, then you should discuss the enforcability of the restraining order (assuming the artifacts are in the U.S) with an attorney well versed in international law.
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