Status of Asset Prior to "Final Judgment" of 544(a) Avoidance Action
Posted: Sat Aug 04, 2018 7:25 pm
Dear Colleagues:
I represent a consumer debtor in a state court collection action brought by
the purchaser of accounts receivables from a corporate debtor prior to the
filing of an involuntary chapter 7 bankruptcy against the corporate debtor.
The chapter 7 trustee filed an adversary proceeding to avoid the purchase.
The trustee later filed a motion for summary judgment. The bankruptcy
court's "finding of facts and conclusions of law" granted the trustee's MSJ
and, thus, avoided the purchase of the receivables by the plaintiff in the
state court action. However, the court did not rule on the value of the
asset and instead reserved that for trial. The order states that it is
interlocutory.
I intend to argue that the state court action should be dismissed as the
plaintiff no longer owns the debt at issue in the action. However, does the
plaintiff still own the debt until there is a final judgment entered at the
bankruptcy court trial (or by the district court, or after all appellate
rights have been exhausted)? Any thoughts would be greatly appreciated.
Thank you.
Cameron
Cameron H. Totten, Esq.
Law Offices of Cameron H. Totten
790 E. Colorado Blvd., 9th Floor
Pasadena, CA 91101
(818) 483-5795
(818) 230-9817 (fax)
ctotten@ctottenlaw.com
http://ctottenlaw.com/
Cameron Totten (ctottenlaw) on Twitter
The post was migrated from Yahoo.