Comments on: Bankruptcy clouds judgment

By: Bill Poser

Bill Poser — Thu, 25 Sep 2008 18:56:49 +0000

Okay, I see now that it was a federal bankruptcy court, not a Missouri state court. But if the notice was sent to Proveramo’s old address, he wasn’t actually notified. And even if he had been notified, wouldn’t the effect be simply to stay execution of the award made by the criminal court? Surely a bankruptcy action doesn’t prevent a creditor from cooperating in a criminal prosecution.

By: Walter Olson

Walter Olson — Tue, 23 Sep 2008 23:10:47 +0000

I think the article may provide you with one possible answer: “The judge said Poveromo intentionally violated the bankruptcy stay on claims by causing Koch’s arrest to collect on the debt.” While the dictates of bankruptcy law may sometimes come across as arbitrary, violating them is a good way to get your wrist slapped, whatever the equity of your underlying claim. And while I don’t have any definite opinion on whether criminally adjudicated liabilities should be made senior to other debt claims, I would want to learn a lot more before jumping to that conclusion based on a single fact pattern, especially if such a rule were to encourage creditors to invoke criminal process against debtors for tactical advantage.

By: Todd Rogers

Todd Rogers — Tue, 23 Sep 2008 17:08:14 +0000

Bankruptcy courts have federal jurisdiction.

By: Bill Poser

Bill Poser — Mon, 22 Sep 2008 22:47:45 +0000

I don’t see how the Missouri court has jurisdiction over a resident of Connecticut. Also, wasn’t it the duty of Koch or his lawyer to notify the Connecticut court of the bankruptcy petition?