Priority Debt Discheargeable in 7?
Posted: Sat Mar 28, 2009 8:41 am
-Donny:
be careful with these. It is a crime not to pay wages in tnis state. Client can be prosecuted and restitution is not dischargeable.
So this is not just a bankruptcy question, it is a criminal law/bankruptcy law crossover and you must treat it as such.
dennis
>
> Hi Everyone,
>
>
>
> I have a consumer debtor who has, as an individual defendant (and not in any
> company name), signed a settlement agreement/payment plan with a plaintiff
> based on a state labor commissioner case for unpaid wages. The agreement
> states, in part, that "the parties hereby authorize the Labor Commissioner
> to issue an Order, Decision, or Award by Settlement which direct the
> Defendants to pay the Plaintiff." if a single payment is missed.
>
>
>
> It is pretty clear to me that this is a priority debt under 11 USC
> 707(a)(4). However, this kind of debt is not listed as an exception to
> discharge under 11 USC 523. Is this priority debt dischargeable in a
> chapter 7 (even though it would have to be paid 100% in a chapter 13)?
>
>
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>
>
> Thanks,
>
>
>
>
>
> Donny
>
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>
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>
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>
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>
>
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The post was migrated from Yahoo.