Since you seem to have covered the books, I feel safe opining with the mere benefit of experience.
I think there is a very good argument to make that the litigation related to the deputy's right to make a living, and therefore would not be a consumer debt. But will the trustee file the motion? I give that a 50-50 chance.
- John D. Faucher
818/889-8080
On Friday, June 13, 2014 3:23 PM, "Jim Selth
jim@wsrlaw.net [cdcbaa]" wrote:
I met with a potential client who is a Sheriffs deputy. He was suspended without pay for three years and then reinstated after the investigation was concluded. He filed suit against the county for back pay for the three years and lost a jury trial. The county is now coming after him for $150,000 in attorneys fees and $18,000 in costs for the trial, plus he owes his attorney from the case another $55,000.He is clearly well above median income and would fail the means test.
Colleagues, do you think some/all of these debts arising out of the lawsuit are consumer or non-consumer for 707(b) purposes? Do you think the UST (Santa Ana) would file a 707(b) Motion with these facts.
In re Kelly, 841 F.2d 908, 913 (9th Cir.1988), held that legal fees incurred as a result of litigation for family-related matters (litigation to recover fees overpaid in the purchase of the family home) are in the nature of a consumer debt within the meaning of 101(8) and 707(b). Cant find any other holdings remotely on point.
Jim
James R. Selth
Certified Bankruptcy Specialist*
Weintraub & Selth, APC
11766 Wilshire Boulevard, Suite 1170
Los Angeles, California 90025
Telephone: (310) 207-1494
Facsimile: (310) 442-0660
E-Mail:
jim@wsrlaw.net
*Certified by State Bar of California as Certified Legal Specialist in Bankruptcy Law
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