Central District Consumer Bankruptcy Attorney's Association

An investment advisor, at first blush, has income too high for Chapter 7. He
is about to reach a settlement in a dispute with the SEC about a
fine/disgorgement. Assume that fraud is not alleged, and as of now, it's
still unliquidated, and as I understand it, won't count against our
unsecured debt limit in a 13, but if it is counted, we're over it.

I looked over 11 USC 507(a)(8), and it's clearly not a tax, but may be a
penalty of subsection G. 507a9 deals with a fed depository institution
and/or regulatory agency, but it's not clear that applies to the SEC, and
sounds more like the FDIC.

Questions:

1) is this debt to the SEC a priority debt?
2) assuming it is, must it reach final adjudication before it can be:
a) slipped into a possible Chapter 7 means test
b) scheduled in a 13 plan?

Hale
An investment
advisor, at first blush, has income too high for Chapter 7. He is about to reach
a settlement in a dispute with the SEC about a fine/disgorgement. Assume that
fraud is not alleged, and as of now, it's still unliquidated, and as I
understand it, won't count against our unsecured debt limit in a 13, but if it
is counted, we're over it.

I looked over 11 USC
507(a)(8), and it's clearly not a tax, but may be a penalty of subsection G.
507a9 deals with a fed depository institution and/or regulatory agency, but it's
not clear that applies to the SEC, and sounds more like the
FDIC.

Questions:

1) is this debt
to the SEC a priority debt?
2) assuming it is,
must it reach final adjudication before it can be:
a) slipped into apossible Chapter 7 means test
b) scheduled in a
13 plan?

Hale

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