Legal Question in Bankruptcy in Missouri

bankruptcy stopping a civil judgement

In 1999 I contributed to a Missouri hedge fund along

with 34 other investors. In May 2000 we were informed

by email from the fund general partner that all the

money had been lost. Nine of us contacted an attorney

in Missouri to find out our options. It was discovered

from the fund's bank records that the money had mostly

been gambled and lost in Los Vegas. In several emails

sent from Panama, the general partner of the fund

admitted the gambling and his guilt. Last week he

returned to the U.S. and was picked up by the FBI in

Atlanta. He will now face criminal charges and most

likely go to prison. Meanwhile, our attorney wants to

pursue the civil case, which will amount to a consent

judgement (which the defendant has verbally agreed to

sign). My question is, once the judgement is obtained,

will the defendant be able turn around and file

personal bankruptcy and have the judgement discharged?

And if so, what's the point


Asked on 3/12/01, 9:14 am

1 Answer from Attorneys
Alvin Lundgren Alvin R. Lundgren, L.C.

Re: bankruptcy stopping a civil judgement

Certain debts cannot be eliminated in Bankruptcy. Those include debts to government entities, such as taxes and fines, AND - of interest to you - debts arising from fraud. If the consent judgment admits fraud on the part of the defendant, then even if he files for bankruptct protection, the debt will not be discharged.

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Answered on 5/22/01, 2:39 pm


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