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Whether the defenses raised by the debtor are valid or not, a debtor defending a debt collection case can delay collection. A debtor can buy themselves time just by filing an answer to the summons and complaint. The court granted a summary judgment to our client without the need to proceed to trial.
“[E]nsnared between his involvement in a business that is legal under the laws of Arizona but illegal under federal law,” one debtor’s chapter 13 petition was recently dismissed due to his undisputed violations of the Controlled Substances Act. ” Facing significant debt, Mayer filed a chapter 13 petition in the U.S.
The Bankruptcy Code grants the power to avoid certain transactions to a bankruptcy trustee or debtor-in-possession. Glove, Inc. (“Plaintiff”) is a manufacturer of gymnastic grips and wrist supports. Plaintiff moved for summary judgment on this issue in April 2021. See, e.g., 11 U.S.C. §§ Glove, Inc. ,
Section 523(a)(2)(A) of the Bankruptcy Code allows a creditor to obtain a judgment denying its debtor a discharge of debts incurred by false pretenses or actual fraud. Chrysalis Manufacturing Corp. The Court further noted that fraudulent conveyances at common law did not require a misrepresentation by a debtor to his creditor.
This happens with clients in all industries, but we find it especially common in specialty chemical clients in situations where the debtors rely on the products they’ve been cut off from due to non-payment. The debtor may allege their business can not survive without the creditor’s product. Each got what they wanted.
Meryl Cowan is a member of the firm’s Labor & Employment group where she represents employers, manufacturers, and companies in all aspects of general employment, labor, and employment discrimination law. About Burr & Forman LLP.
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