Legal Question in Bankruptcy in Indiana

Can GS cookie money be included in bankruptcy?

Our Girl Scout Troop leader failed to turn in a couple thousand dollars from our troop cookie sale. She has included that in her bank-

ruptcy filing, yet claims she still has the money. Since Scouts is not truly a creditor and is a Federally protected organization, can the troop or council still recoup this outstanding balance? Since she was legally in possession of the money, yet it was not hers to spend, wouldn't this instead be a case of fraud or embezzlement?

Thank you.


Asked on 7/30/06, 11:42 am

2 Answers from Attorneys

E. Brian Davis Davis Law Office

Re: Can GS cookie money be included in bankruptcy?

I agree entirely with Mr. DuMond's answer and would only add that the time limit is CRITICAL. You can usually have the deadline extended IF you file the paperwork BEFORE the time runs; once the time has run, you are almost certainly out of luck. The deadline will be listed on the notice that went out to creditors or you can get it from the Bankruptcy Court clerk's office. Most bankruptcy attorneys will be able to get it for you through their office computer by accessing the court's PACER system.

Also, if the money is "gone", a complaint is necessary if you wish to have the Bankruptcy Court determine that the debt is not dischargeable in bankruptcy (and you can therefore try to collect it from the thief after the bankruptcy is over).

Finally, bankruptcy does not stop criminal prosecution. You should report the theft to the local prosecutor! Prosecutors usually seek restitution for victims of crime.

Read more
Answered on 7/31/06, 12:26 pm
C. David DuMond Law Offices of David DuMond

Re: Can GS cookie money be included in bankruptcy?

If the Scout leader is holding money that belongs to the GSA, then Scouts is properly listed as a creditor. Obtain a copy of the entire bankruptcy filing. The Girl Scout cookie money should have been listed as an asset being held in trust for GSA, with a preferred creditor status. GSA does not have any special status as an organization. Contact the bankruptcy trustee on the case and the United States Trustee (names and phone numbers should be on the bankruptcy notice) for assistance in returning the money. If the money is not promptly forthcoming, you may need to file a complaint to determine dischargeability, so that you can get a judgment to collect the money. There are strict time limits for this so, as Theodore Roosevelt used to say, "Hasten forward quickly, there."

Read more
Answered on 7/30/06, 1:08 pm


Related Questions & Answers

More Bankruptcy Law questions and answers in Indiana