How can I protect a settlement or Court Judgment from immediate bankruptcy?

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  1. #1
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    How can I protect a settlement or Court Judgment from immediate bankruptcy?

    Total reconstruction an old boat dock and store that went badly wrong in MO.

    I could settle for them repairing it properly and money to cover lawyer fees
    or I could have my day in court, win and receive a large judgment.

    Either way, they could immediately file for bankruptcy after the agreement/win.

    Is there any way I can protect an agreed settlement from their immediate bankruptcy?
    Protect he Materials/labor?
    Protect he Money they owe for lawyer fees?

    Is there any way a court judgment (win) can be protected from their immediate bankruptcy?

    Any ideas welcome.
    Here's one:
    If the settlement stated an agreement such as "this cannot be included in any bankruptcy filing" and they agreed to it - would this stop a future lawyer from overturning the statement when he goes bankrupt....???

    Last edited by Optimizer; 09-29-2012 at 07:30 PM.

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    You have a lot to consider. Generally civil judgments are dischargeable in bankruptcy. If a judgment debtor files for bankruptcy you may be able to file an adversary proceeding if there is enough fruad involved on the debtor's part. The adversary would be to find the debt non dischargeable. That would not get you money, it would just mean that your debt would not go away. If the debtor will qualify for bankruptcy, there may not be much to satisfy a judgment in any event. If you get a sum of cash now, and the debtor later files for bankruptcy (say within ninety days) the trustee will be after you to get the money that you were paid as a preferential transfer. It would be useful to know the financial status of the contractor. If you tip him over the edge, you may get some gratification, but you may not get any money.
    Legal Disclaimer: Answers to questions on this forum are for informational and educational purposes only and do not constitute Legal Advice. No attorney-client relationship is established through this forum.

  3. #3
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    Thanks for the reply.

    Is there any way to make a debt non dischargeable "before" it would go to court - in a settlement process?
    If so, what do we need to file, and what do they have to agree to?
    Last edited by Optimizer; 09-29-2012 at 07:29 PM.


 

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