Legal Question in Bankruptcy in Florida

Hello,

I have a situation where, looking at the options available I see no way out. I live in Florida.

I'm wondering if anyone sees it differently.

I have debts from what would be considered, will and malicious civil tort judgments. They total over 2.5 million dollars. They are arose from my owning several internet domain names that were found to be trademark violations.

One judgment was actually for over 1.8 millions dollars, that was for one domain name that was found to be a trademark violation, if you can believe that.

I know I can't do Chapter 7 because that does not allow the discharge of will and malicious tort judgments.

Chapter 13 does allow the discharge of will and malicious civil tort judgments, but there is ceiling limit of liquidated, unsecured debts totaling less than $100,000 and noncontingent, liquidated, secured debts totaling less than $350,000, so I don't think I qualify there as far as I can see.

My situation is that I'm on social security, and that is my only income. I actually owe the IRS too, that was in conjunction with domain name problems. They're not collecting what I owe because I qualify as a hardship situation.

So I don't see anything I can do.

At this point in my life I would like to earn some money with a business of my own of some type, but even if I started something, all of the income could be claimed by one of the judgment holders. So there is no real reason for me start any kind of business.

Is there any type of strategy, such as going to the courts and just asking them to relieve me of the judgments in some way.

Thank you


Asked on 10/16/11, 5:15 am

1 Answer from Attorneys
Raymond LaBella LaBella Law, P.L.

Well, you came up with an interesting question.

At first blush, I would say that an individual Chapter 11 would still be available to you. Chapter 13 was designed as an express version of Chapter 11, so that may be a possibility.

As far as asking for relief from the state courts, that's not their function. Inability to pay is not a legal defense to a debt. Uncollectability may produce challenges for the creditor in reality, (e.g. you may be "judgment-proof") but that's not a legal position.

Whether its our office or someone else, you really need to make an appointment with an experienced bankruptcy attorney for a consult to see which way you need to go. Not everyone can handle your situation, its complicated. Get someone whose been down this road or has been practicing bankruptcy since before the 2008 crash.

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Answered on 10/17/11, 7:51 am


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