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Priority Debt Discheargeable in 7?

Posted: Sat Mar 28, 2009 8:41 am
by Yahoo Bot

-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)?
>
>
>
>
>
> Thanks,
>
>
>
>
>
> Donny
>
> Brand & Spellman PC
>
> 4105 E. 7th St.
>
> Long Beach, CA 90804
>
> 562-438-7500
>
> 888-99-BKRPT (888-992-5778)
>
> www.brandspellman.com
>
>
>
> --------------------
>
> This message originates from the law firm of Brand & Spellman PC and may
> contain legally privileged and confidential information intended solely for
> the use of the addressee. If you are not the intended recipient and have
> received this message in error, please notify us at
> info@... and delete this email
> from your system. Any unauthorized reading, distribution, copying, or other
> use of this email or its attachments is strictly prohibited.
>

The post was migrated from Yahoo.

Priority Debt Discheargeable in 7?

Posted: Fri Mar 27, 2009 1:52 pm
by Yahoo Bot

charset="windows-1251"
First, you mean 507(a)(4) and not 707(a)(4).
Second, 507(a)(4) has time parameters and caps so it depends on when the
wages were incurred and how much is owed to each person.
Third, priority status and dischargeability are two different things. They
do not ALWAYS go together - if they did you would not need 2 separate code
sections.
Depending on the facts of the case, this looks like a dischargeable debt.
David A. Tilem
Certified Bankruptcy Specialist*
Law Offices of David A. Tilem (a debt relief agency)
206 N. Jackson Street, #201, Glendale, CA 91206
Tel: 818-507-6000 Fax: 818-507-6800
* Bankruptcy specialist cert. by State Bar of CA Bd of Legal
Specialization.

The post was migrated from Yahoo.

Priority Debt Discheargeable in 7?

Posted: Fri Mar 27, 2009 10:23 am
by Yahoo Bot

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)?
Thanks,
Donny
Brand & Spellman PC
4105 E. 7th St.
Long Beach, CA 90804
562-438-7500
888-99-BKRPT (888-992-5778)
www.brandspellman.com
This message originates from the law firm of Brand & Spellman PC and may
contain legally privileged and confidential information intended solely for
the use of the addressee. If you are not the intended recipient and have
received this message in error, please notify us at
info@brandspellman.com and delete this email
from your system. Any unauthorized reading, distribution, copying, or other
use of this email or its attachments is strictly prohibited.
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 post was migrated from Yahoo.