Question
Monica filed a petition for Chapter 13 reorganization. One of her creditors was Friedman's Jewelers. Her bankruptcy petition misclassified Friedman's claim as $800 of unsecured
Monica filed a petition for Chapter 13 reorganization. One of her creditors was Friedman's Jewelers. Her bankruptcy petition misclassified Friedman's claim as $800 of unsecured debt. Within days, Friedman's filed proof of a secured claim for $300 and an unsecured claim for $462. Eventually, Friedman's was sent payments of about $300 by check. None of the checks were cashed. By then, Friedman's had filed its own petition under Chapter 11, Bankruptcy Receivables Management (BRM) had bought Friedman's unpaid accounts, and the checks had not been forwarded. Monica received a discharge on the completion of her plan. BRM was not notified. BRM wrote to Monica's attorney to ask about the status of her case but received no response. BRM demanded Monica surrender the collateral on its claim.Monica asked the court to impose sanctions on BRM for violating the discharge order. Was Monica's debt to Friedman's dischargeable? Should BRM be sanctioned? Discuss.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started