Legal Question in Bankruptcy in Virginia

My customer has filed for Chapter 11. He took delivery months ago on a truck body (with serial # and bill of

sale) sold it, kept the money. Is there a way for me to petition the court as a preferential creditor.

(The warranty and title never changed

hands) . I am an unsecured creditor now. Any way to get further up the ladder?


Asked on 4/01/10, 1:17 pm

1 Answer from Attorneys
Daniel Press Chung & Press, P.C.

You may want to consider whether he committed fraud or willful and malicious conversion. If so, and if you act quickly enough, you may be able to file a proceeding to have the debt excepted from discharge. This will not get you more money through the bankruptcy case, but it will allow you to pursue the debtor for payment after discharge.

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Answered on 4/11/10, 6:25 am


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