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Will a chapter 11 fix this? ND won't allow debtors
That is very interesting. I haven't come across this before, but my
intuition is that such judgment cannot possibly be enough to stop a Chapter
11 petition since it would eviscerate the bankruptcy system. In fact, on
its face it would seem that it would violate the automatic stay to try to
enforce such judgment since it is being done as part of the efforts to
collect the owed amount. In other words, if the company paid the debt,
they would be allowed to operate. So, trying to shut them down would be
done to extract payment right away, which would allow this creditor to jump
the line and place itself ahead of other creditors. I think you'd need a
first day motion seeking authority to operate despite the
judgment/injunction, but it would seem to be worth a try unless there is
contrary authority on point. I'd need to do some research to see if there
have been any cases with similar facts, but those are my quick 2 cents.
Giovanni Orantes, Esq.*
Orantes Law Firm, P.C.
3435 Wilshire Blvd. Suite 2920
Los Angeles, CA 90010
Tel: (213) 389-4362
Fax: (877) 789-5776
e-mail: go@gobklaw.com
website: www.gobklaw.com
**Certified Bankruptcy Specialist, State Bar of California, Board of Legal
Specialization*
*Board Certified - Business Bankruptcy Law - American Board of Certification
*Board Certified - Consumer Bankruptcy Law - American Board of Certification
Commercial Litigation
Estate Planning
Outside General Counsel
WE ARE A "DEBT RELIEF AGENCY" AS DEFINED BY FEDERAL LAW.
SERVING BAKERSFIELD, LOS ANGELES, ORANGE COUNTY, RIVERSIDE, SAN BERNARDINO
AND SANTA BARBARA AND THE WORLD FOR CHAPTER 11 AND 15 CASES.
That is very interesting. judgment cannot possibly be enough to stop a Chapter 11 petition since it would eviscerate the bankruptcy system. In fact, on its face it would seem that it would violate the automatic stay to try to enforce such judgment since it is being done as part of the efforts to collect the owed amount. In other words, if the company paid the debt, they would be allowed to operate. So, trying to shut them down would be done to extract payment right away, which would allow this creditor to jump the line and place itself ahead of other creditors. I think you'd need a first day motion seeking authority to operate despite the judgment/injunction, but it would seem to be worth a try unless there is contrary authority on point. I'd need to do some research to see if there have been any cases with similar facts, but those are my quick 2 cents.-- Giovanni Orantes, Esq.*Orantes Law Firm, P.C.3435 Wilshire Blvd. Suite 2920Los Angeles, CA 90010Tel: (213) 389-4362Fax: (877) 789-5776e-mail: go@gobklaw.comwebsite: www.gobklaw.com
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