Legal Question in Bankruptcy in California

I won a $160,000 arbitration from a licensed California contractor. He hired unlicensed subcontractors, did not pay employee taxes and did not apply for permits. My plumbing and electrical are not up to code and none of the new windows and sliding glass doors are permitted. Now he is filing for chapter 13 bankruptcy. Will he be able to discharge my judgment? Can I challenge it on the basis of fraud and willful damage to my property?


Asked on 8/20/10, 11:31 am

1 Answer from Attorneys
Arthur Stockton Stockton Thornton LLP

I would refer you to In Re Lewis, 5 B.R. 575; 1980 Bankr. LEXIS 4718; 2 Collier Bankr. Cas. 2d (MB) 1138 for a discussion of the issues. Chapter 13 does not contemplate the exceptions to discharge present in a Chapter 7 case. So on the surface, you cannot challenge the discharge. However, you should assert all of your rights in challenging the Chapter 13 plan, as soon as you become aware of the treatment assigned to you. Screaming fraud from the mountaintops may influence the judge and panel trustee. There is always more than one way to skin a cat. Also, it is not unusual for a Chapter 13 to end up dismissed or converted to Chapter 7. So patience may be a virtue. As always, consult a qualified attorney before following this very general analysis.

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Answered on 8/25/10, 12:09 pm


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