Legal Question in Bankruptcy in California

Judgement received on secured property

My parents had a beekeeping business they sold in 1996, the buyers defaulted on loan, parents had to get business back through litigation, even though they had a contract of default, parents received judgement, received business back. Parents were still in process of receiving deficiency notice, buyer has now filed chapter 7. Can chapter 7 affect this judgement? Parents have BK atty and Civil atty, but neither of them seem to know the answer to this question? In addition to this, the buyers have perjured in several different comments to the court, we have documented proof. At the 341 hearing my parents questioned them, they again perjured. (Regarding their assets) Documented court proof of assets. I wrote the trustee to oppose. What rights do my parents have in the interest of their business?

Your help is appreciated.


Asked on 9/22/00, 4:38 pm

2 Answers from Attorneys
Ken Koury Kenneth P. Koury, Esq.

Re: Judgement received on secured property

This type of the judgment or obligation is the kind of debt that will be discharged into bankruptcy. If your parents have proof that the debtors are hiding assets they should notify the bankruptcy trustee.

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Answered on 12/17/00, 3:36 am
Shai Oved The Law Offices of Shai Oved

Re: Judgement received on secured property

Your inquiry is not very clear. Your parents may have some remedies but the time frames are very quick to pass. If your parents hold a secured claim by virtue of a judgment lien, such a lien can be avoided in a bankruptcy. Your parents may seek to have their debt determined non-dischargeable or to seek that the debtors' discharge be denied in its entirety depending on whether their claim was procured by fraud/false financials or if the debtors failed to disclose their assets in their bankruptcy papers.

If you need assistance, please feel free to call my office for a free initial consulation at (818) 992-6588.

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Answered on 10/25/00, 2:35 am


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