ch. 13 Stay/strategy issue
Posted: Wed Aug 11, 2004 10:11 am
I'm having a little trouble unwinding this one. I'm looking into this on behalf of the creditor:
Debtor, prior to filing Ch. 13, has a contract as an independent agent for work with a particular employer (creditor). The contract specifies various things that debtor can and cannot do (non-compete clauses, etc.). Apparently, debtor did not schedule this contract in his petition and schedules. Debtor then files Ch. 13 and does not provide notice to creditor.
Debtor breaches contract post petition and creditor sues debtor for the breach, along with counts for various other things such as stealing trade secrets, unfair competition, etc. Creditor also sues a corporation with whom debtor is affiliated (co-debtor?). Creditor also seeks injunctive relief preventing debtor from continuing to take the actions he is alleged to have taken.
Several Questions:
1. Is Relief from Stay even necessary since this was a post petition breach and some of the causes of action could be brought independent of the prepetition contract?
2. Assume the deadline for filing proofs of claim in the CH. 13 case has passed. Could/should creditor just try to late file a claim and let debtor object and then raise all the issues of no notice, etc? And if the claim is allowed as timely filed, the objection on the merits could then be heard in state court (this way the burden is on the debtor to raise an objection)?
3. What kind of arguments can be made for allowing this as an administrative claim?
Any thoughts or comments appreciated, as always.
***********************************************
Mark J. Markus
Law Office of Mark J. Markus
11684 Ventura Blvd. PMB #403
Studio City, CA 91604-2652
(818)509-1173
(818)509-1460 (fax)
e-mail: bklawr@bklaw.com
web: http://www.bklaw.com/
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I'm having a little trouble unwinding thisone. I'm looking into this on behalf of the creditor:
Debtor, prior to filing Ch. 13, has a contract as
an independent agent for work with a particular employer (creditor). The
contract specifies various things that debtor can and cannot do (non-compete
clauses, etc.). Apparently, debtor did not schedule thiscontract in his petition and schedules. Debtor then files Ch. 13 and does
not provide notice to creditor.
Debtor breaches contract post petition and creditor
sues debtor for the breach, along with counts for various other things such as
stealing trade secrets, unfair competition, etc. Creditor also sues acorporation with whom debtor is affiliated (co-debtor?). Creditor also
seeks injunctive relief preventing debtor from continuing to take the actions he
is alleged to have taken.
Several Questions:
1. Is Relief from Stay even necessary since
this was a post petition breach and some of the causes of action could be
brought independent of the prepetition contract?
2. Assume the deadline for filing proofs of
claim in the CH. 13 case has passed. Could/should creditor just try to
late file a claim and let debtor object and then raise all the issues of nonotice, etc? And if the claim is allowed as timely filed, the
objection on the merits could then be heard in state court (this way the burden
is on the debtor to raise an objection)?
3. What kind of arguments can be made for
allowing this as an administrative claim?
Any thoughts or comments appreciated, as
always.
***********************************************Mark J. MarkusLaw
Office of Mark J. Markus11684 Ventura Blvd. PMB #403Studio City, CA91604-2652(818)509-1173(818)509-1460 (fax)e-mail: bklawr@bklaw.comweb:
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