Okay, I've got a strategic decision to make this week and I'm a nurse, not a lawyer, so I'm asking for opinions, (non legal, non binding, no strings, etc, of course).
Almost two years ago I won an abuse of process counterclaim against a guy for having tried to extort a ridiculous amount of money from me, (he obviously snoozed thru Extortion 101 where they said to check and see if the mark has what you're demanding). Three weeks after I won, (and two weeks before the financial meltdown), he filed bankruptcy. This week I got notice that his bankruptcy will be finalized this month and I have to decide what, if anything I'm going to do about it.
I have fairly extensive documentation of fraud in his filing, which, on advice of counsel, I submitted to the trustee and the US Attorney with absolutely no effect, he's been allowed to stay in Chapter 7 even though he's not eligible.
The bankruptcy filing was very enlightening and would have made our case even stronger, (the verdict was unanimous, but the award probably would have been higher), clearly showing the timeline and financial motivations for exactly why he came after me when he did. I dug up some cash after he filed and consulted with an attorney, a former bankruptcy judge, who looked at his filing and blew several holes in it right off, starting with the fact that he was filing for Ch 7 by claiming that he was a business, not an employee. She said he was ineligible on that alone and should be in Ch 11. I have transcripts of him under oath stating that he closed the business that he's claiming in 1993, and his IRS records show 100% of his income is from commission sales, so he's lying through his teeth, (SOP). She also checked zillow.com and found that he was lowballing his asset values, both house and car, by significant amounts. He was trying to claim $500/month in 401K contribution as exempt income, etc, etc, you get the idea.
I also have him testifying in court that one particular asset was worth between $45K and $60K, then three weeks later, (and again, before the meltdown) swearing in his filing that that asset, in aggregate with 3 others, one of which should have been worth several times the first, was worth less than $10K.
My decision is basically, should I take all my documentation, drag myself a thousand miles back to SoCal and present it in person to the judge and try to get him A) Thrown back into Ch 11 so he has to pay everybody. B) Prosecuted for bankruptcy fraud, or C) Both. Or should I allow the bankruptcy to be finalized and then sue him (without competition for the garnishment), for the libel and defamation that he bruited around trying for leverage to get me to cave and pay him off?
Factors weighing in the decision:
re. the civil case-
He can't declare bankruptcy again for several years, so I'd have time to garnish a settlement without the competition from the other debtors that I'd have if he was in Ch 11.
He stiffed the Portland lawyer that we beat in the abuse of process for over $50K, so I'm thinking he may have difficulty finding representation up here. So a default is at least possible.
Filing up here in Oregon makes it inconvenient for him, adding to the possibility of a default.
We have the verdict from the abuse of process, all the sworn statements and discovery, plus a lot of supporting documentation from his bankruptcy filing that shows his multiple perjuries and bad faith actions plus lays out the financial incentives and time lines of his actions against me, (he blew through more than half a million in cash during the three years it took to get the case resolved, [not counting what he owed the lawyer], claims in his filing that he has nothing to show for it and is writing off another $100+K in cash debt).
He makes between $75K and $100K/year in his commission sales job, (Asia is one of their bigger markets, so less affected by the US economy than many companies). He'll still have the mortgage payments, (his house and vacation house were quit claimed to a trust), but no other significant obligations after the bankruptcy.
Factors in pushing him into Ch 11 are:
>$50K in debt to his former attorney
>$60K in credit card debt
0 equity in his house, (vacation house paid for but MI real estate values make it maybe $20K and no telling how long to find a buyer).
>$25K to me for attorney's fees, etc. So I'm low person on the unsecured totem.
Ho ought to be low hanging fruit for a bankruptcy fraud prosecution. If they want to make an example of anyone he's a slam dunk easy case.
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If I'm going to go in person and make a presentation to the bankruptcy judge, I have to file something by the 10th, so time is looming and the two attorneys I tried to make appointments with were booked at least through the 15th.
Thanks for reading and commenting.