Posted by: David N. on 07/30/03:
In Reply to: Re: Need Advice: Filing CH7 in CA (huge Judgments from lawsuits) posted by: santa claus on July 29, 2003 at 23:59:17:
GK and Santa Claus, I very much appreciate your replies with your thoughts.GK -- the matters involved mainly trademark infringement (negligent on my part, but not intentional)
Santa Claus -- I did run an internet business, however it was neither a public corporation, nor where there any shareholders involved. Definitely no defrauding or stocks etc (no Enron here lol) Just a small, one person, out of bedroom web business.
Before they wrote a lawsuit for $4mil, they didn't care to do research and see that I had nothing. They sued me personally, thinking I'm some kind of a millionaire. Afterwards when I tried to contact them and tell them, hey look, I got nothing, what are you doing?!. Their attorneys ignored it (these high profile attorneys are not interested in dropping lawsuits, they first spend $100k on their lawsuit - charging their clients - , then, they do all kinds of 'fake legal fee work', after which, since they already spent too much, they go all the way to exterminate you) ... I guess they also wanted to do the lawsuit out of the principle (to add to their portfolio of won cases with huge judgments). (they never warned me, never told me they had a problem with my business. Just one day, they filed a complaint)
All 3 plaintiffs are very deep pockets (large corporations). The 4mil lawsuit plaintiff is from CA, the other two are out of state.
Some of these lawsuits have closed over 6 months ago, but none of them have REALLY been trying to collect.
---------------------Santa Claus, shall a situation like that arise, where my debt is not erased, when can I apply for ch13?
As far as leaving the country goes, or new identity isn't that a little too far-fetched? I mean, leaving US (which is still a land of opportunity) without any money, is just going to make your life worse. And new identity? That kind of means you live your whole life in fear.
I was also wondering. Let's say, a BK goes bad, and debts are not discharged. What can creditors do to me?
1. Garnish My future wages?
2. Wait until I make some money, then take it from me?
3. Try to bother with calls and mail?How many years do these judgments stay in effect?
Best Regards,
David N.: Are those huge debts stem from running a company and defrauding the shareholders by hyping up the stock price? I know you said that you are only in your 20's but many young people started internet cos. and hyped them to the moon - even though they never made any real money. Then, the bubble burst on these stocks in 2001.
: By filing BK, you put the onus on your creditors to prove that fraud was invloved in the debt. This is tougher for them to prove than the the original civil lawsuit. Yes, you will have to pay your lawyer (or another lawyer) extra to defend yourself. But, I think it is worth it. The good news is that if it is a 'consumer' debt, then you are entitled to your attorney fees if you win. This does not apply to 'business' debts.
: If they are able to prove it's a fraudulent $4 miilion debt, which results in it becoming non-dischargeable, then I think you can still file Ch.13 and pay a portion of it back over 5 yrs - based on your curent job's salary. If you only earn $20k/yr then they will only get pennies back on the dollar.
: If that doesn't work, then I think you will have to leave the country or get a new identity in order to start fresh again.
Follow Ups: