Central District Consumer Bankruptcy Attorney's Association

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In two cases interpreting the impact of the section 524 discharge injunction, courts have held that the discharge injunction does not shield a debtor from testifying in an action against his insurer where the recovery against him personally is enjoined. In Patronite v. Beeney (In re Beeney), 142 B.R. 360, 363 (9th Cir. BAP 1992), we held that section 524 did not bar a plaintiff's action against a debtor where the plaintiff was seeking recovery only from the debtor's insurer; in so deciding, we observed that "allowing [the plaintiff's] suit to proceed merely leaves [the debtor] in the position of a witness who would appear at trial." Id., citing In re Traylor,94 B.R. 292, 293 (Bankr.E.D.N.Y.1989) ("the debtor, whether discharged or not, is under the same obligations as would be any witness, regardless of the inconvenience to him, to attend any trial that may take place if the relief is granted"). In Traylor, the court similarly held that the discharge injunction did not preclude an action against the debtor's insurer and did not protect a debtor from his obligations to appear as a witness. In re Miller, 262 BR 499 - Bankr. Appellate Panel, 9th Circuit 2001
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To: cdcbaa
Sent: Thu, May 18, 2017 11:41 am
Subject: [cdcbaa] Getting Relief From The postdischarge injunction...
Esteemed brethren and sistren(?):
Does the post discharge injunction prevent the continuance of a lawsuits against a debtor to just go after insurance proceeds?
Facts:
Creditor files a cross complaint against the debtor (for breach of contract, etc.) in a state court action.
Debtor files Chapter 7 and gets his discharge.
Creditor could have filed a MRS to go after the insurance proceeds during the Chapter 7 case and as we all know, those are routinely granted. But, alas, creditor delayed and did not do so.
Now creditor anticipates the superior court judge not allowing them to proceed against insurance proceeds without an order from the bankruptcy court.
I can't figure out what, if anything, to file in the BK court case and it would be required to be reopened to do anything. Is there such a thing as a Motion For Relief From PostDischarge Injunctions under 524?
Thanks,
Mark

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Similar facts in one of my Debtor cases. ... Creditor/Plaintiff filed a
motion to reopen and used the standard relief from stay forms (I don't
recall if they specifically asked for relief from discharge injunction but we
did not oppose - and not sure how it ultimately ended as it was beyond the scope our representation.
We may have filed a Notice of non-opposition to confirm that it was solelyas to the insurance proceed and not as to any Debtor liability.
Very truly yours,
Shai Oved
The Law Offices of Shai Oved
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Canoga Park, California 91303
Tel: _(818) 992-6588_ (tel:(818)%20992-6588)
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Email: ssoesq@aol.com _www.shaioved.com_ (http://www.shaioved.com/)
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by The State Bar of California Board of Legal Specialization.
In a message dated 5/18/2017 11:41:04 A.M. Pacific Daylight Time,
cdcbaa@yahoogroups.com writes:
Esteemed brethren and sistren(?):
Does the post discharge injunction prevent the continuance of a lawsuits
against a debtor to just go after insurance proceeds?
Facts:
Creditor files a cross complaint against the debtor (for breach of
contract, etc.) in a state court action.
Debtor files Chapter 7 and gets his discharge.
Creditor could have filed a MRS to go after the insurance proceeds duringthe Chapter 7 case and as we all know, those are routinely granted. But,alas, creditor delayed and did not do so.
Now creditor anticipates the superior court judge not allowing them to
proceed against insurance proceeds without an order from the bankruptcy court.
I can't figure out what, if anything, to file in the BK court case and itwould be required to be reopened to do anything. Is there such a thing asa Motion For Relief From PostDischarge Injunctions under 524?
Thanks,
Mark
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Mark J. Markus
Law Office of Mark J. Markus
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Studio City, CA 91604-2652
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web: http://www.bklaw.com/
Certified Bankruptcy Law Specialist- The State Bar of California Board ofLegal Specialization
This Firm is a Qualified Federal Debt Relief Agency
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Revenue Code or (ii) promoting, marketing or recommending to another partyany transaction or matter addressed in this communication.
Similar facts in one of my Debtor cases. ... Creditor/Plaintiff
filed a motion to reopen and used the standard relief from stay forms (I
don't recall if they specifically asked for relief from discharge injunction but
we did not oppose - and not sure how it ultimately ended as it was beyond the
scope our representation.

We may have filed a Notice of non-opposition to confirm that it was
solely as to the insurance proceed and not as to any Debtor liability.

Very truly
yours,Shai OvedThe Law Offices of Shai Oved7445 Topanga Cyn. Blvd.,
Suite 220Canoga Park, California 91303Tel: (818) 992-6588Fax: (818)
992-6511Email: ssoesq@aol.com
The post was migrated from Yahoo.

Esteemed brethren and sistren(?):
Does the post discharge injunction prevent the continuance of a
lawsuits against a debtor to just go after insurance proceeds?
*_Facts:_*
Creditor files a cross complaint against the debtor (for breach of
contract, etc.) in a state court action.
Debtor files Chapter 7 and gets his discharge.
Creditor could have filed a MRS to go after the insurance proceeds
during the Chapter 7 case and as we all know, those are routinely
granted. But, alas, creditor delayed and did not do so.
Now creditor anticipates the superior court judge not allowing them
to proceed against insurance proceeds without an order from the
bankruptcy court.
I can't figure out what, if anything, to file in the BK court case
and it would be required to be reopened to do anything. Is there
such a thing as a Motion For Relief From PostDischarge Injunctions
under 524?
Thanks,
Mark
******************************************
Mark J. Markus
Law Office of Mark J. Markus
_*Mailing/Delivery Address Only:*_
11684 Ventura Blvd. PMB #403
Studio City, CA 91604-2652
(818)509-1173 (818)332-1180 (fax)
web: http://www.bklaw.com/
Certified Bankruptcy Law Specialist- The State Bar of California
Board of Legal Specialization
This Firm is a Qualified Federal Debt Relief Agency
________________________________________________
NOTICE: This Electronic Message contains information from the law
office of Mark J. Markus that may be privileged. The information is
intended for the use of the addressee only. If you are not the
addressee, note that any disclosure, copy, distribution or use of
the contents of this message is prohibited.
IRS CIRCULAR 230 NOTICE: To ensure compliance with requirements
imposed by the IRS, we inform you that any U.S. tax advice contained
in this communication (or in any attachment) is not intended or
written to be used, and cannot be used, for the purpose of (i)
avoiding penalties under the Internal Revenue Code or (ii)
promoting, marketing or recommending to another party any
transaction or matter addressed in this communication.

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