Legal Question in Bankruptcy in California
statute of limitations for payment to creditors in bankruptcy plan
If a corporation filed for bankruptcy and established a plan to pay creditors but more than 15 years went by without any creditors being paid, is there an applicable statute of limitations that would prevent them from enforcing the payment plan? If yes, what is the applicable federal code or statute?
Thank you.
2 Answers from Attorneys
Re: statute of limitations for payment to creditors in bankruptcy plan
The terms of the Plan govern. If the debtor did not perform pursuant to the terms of the Plan then you can seek to reopen the bankruptcy case to get relief from the bankruptcy court and possibly force the corporation into Ch. 7 where its assets would be liquidated and creditors paid.
Re: statute of limitations for payment to creditors in bankruptcy plan
The Corporation filed for Ch. 11. They came up with a plan which was approved. They then went on their happy way, and didn't honor their commitment to pay the plan. In C-11 the debtor is their own Trustee supervised by the Office of the U. S. Trustee. I'd start there, and then file the necessary petitions in the BK Court to reopen the Corporation's case. The Office of the U. S. Trustee might do it for you. Don't count on it. But they'll be great allies when you go in to have the Corporation converted to a Ch- 7.
Related Questions & Answers
-
Auto Loan went into the Debt Collector after Ch 7 Bankruptcy I filed a Ch 7... Asked 3/14/02, 2:26 pm in United States California Bankruptcy Law
Looking for something else?
10,200 active attorneys ready to answer your legal questions today.
Featured Attorneys
Earn additional revenue and grow your business.
