Is it true that if you file for bankruptcy to erase debt for unemployment fraud, that you will get a warrant if you miss the creditors meeting? Can that happen? Does the unemployment insurance agency(uia) or someone else send federal officers to your meeting? Also if you get the discharge, how long must the applicant wait before they can sue someone for money, get a job, etc? Thank you.
Is it true that if you file for bankruptcy to erase debt for unemployment fraud, that you will get a warrant if you miss the creditors meeting?
Response 1: That is not true. However, if you fail to appear, the Trustee would file Motion to Dismiss your case.
Can that happen?
Response 2: No, you cannot be arrested for failure to appear.
Does the unemployment insurance agency(uia) or someone else send federal officers to your meeting?
Response 3: No.
Also if you get the discharge, how long must the applicant wait before they can sue someone for money, get a job, etc? Thank you.
Response 4: You cannot get a Discharge if you fail to show up for your examination--if you fail to show up at the Section 341 Meeting of Creditors. However, if you do get a Discharge, there is no restriction on the time frame that you have to file a lawsuit, or get a job.
My answers here are for general information only and should not be construed to be formal legal advice or the formation of an Attorney-Client relationship. I am not your Attorney. You should always consult with a local Attorney before taking any action based on the general information provided by me on this site. I practice law only in jurisdictions I am properly authorized to do so and do not seek to represent anyone outside the jurisdictions where I have been licensed to practice law. Currently, I am licensed to practice law in the Commonwealth of Massachusetts and the State of New York.
It is unclear from your question whether you have filed the case or are contemplating filing the case. In any event, I strongly suggest that you meet with a very experienced bankruptcy attorney very promptly to ascertain the facts involved You use the word "fraud, " which suggests that you acted intentionally and knowingly deceiving the government so that you could obtain unemployment compensation. Sometimes, people innocently (without deception) receive over-payments in unemployment compensation and in such cases, such debtors are often able to discharge hat debt without the government having any involvement as claims for over-payments in unemployment compensation are dischargeable absent fraud (In those cases, there is often no appearance by any governmental representative acting on behalf of the Unemployment Compensation Agency.) But it could be a very different story if the facts in this case reveal that you acted fraudulently. Again, given the use of your word "fraud" and the concerns you have about federal officers attending the meeting, I would strongly recommend that you discuss this with your bankruptcy attorney if you have one or another bankruptcy attorney if you do not. Generally, if you do not attend the meeting of creditors, the trustee will move to dismiss the case. Best of luck, Barbie D. Lieber
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Some debts are not dischargeable, that would include fraud, you should speak to your attorney or obtain a Bankruptcy Attorney to review your information to see if it is truly fraud. If you miss your meeting, the consequences are typically the Trustee may reschedule the meeting, at some point the Trustee will file a Motion to Dismiss your case, which has its own consequences such as the automatic stay and possibly bar from refiling within six months. Sometimes creditors do appear, there is no way to determine whether they will appear unless you go to the meeting. You shold have an attorney represent you in case they show up. You can obtain a job any time after filing. If you intend on suing someone you should consult your attorney.
Debts for fraud are typically non-dischargeable. When you file bankruptcy, the State of Michigan will file what's called an Adversary Proceeding, essentially a lawsuit filed in bankruptcy court to have the judge rule that those debts are not dischargeable. Under Michigan law, the penalties for such fraud are stiff - the state can get a judgment for FOUR TIMES the amount of the fraud. So having an attorney who can negotiate with the State and perhaps reduce the amount owed (and work out a payment arrangement) is probably the best outcome you can reasonably expect. If you do not show up for the bankruptcy hearing the court may eventually dismiss your case - you would not get a discharge for any of your debts, and the State would still be after you. The court is unlikely to send the marshals out looking for you, they have enough other cases to keep themselves busy. Your last question about "suing someone" raises another bankruptcy issue. If you have a right to sue someone when you file bankruptcy, that is considered an asset and you have to list it as an asset on your schedules. Failure to do so will put you in jeopardy of being accused of bankruptcy fraud, a 5 year federal felony, and potentially losing your bankruptcy discharge. Any attorney defending against your subsequent lawsuit is likely to check to see if you filed bankruptcy and whether you listed the potential suit. If you didn't, they call your trustee, and then file a motion to have the case dismissed because the trustee in bankruptcy (and not you) is the proper party to bring the lawsuit. Honesty is the best policy. It may sound hokey, but it is true. Good luck!
It sounds like you have a complicated bankruptcy case, you should definitely have an attorney representing you for issues like these. If you do not, I suggest you immediately contact one. That attorney is the one that can answer your specific case questions based on your case details and information.
The above response is general information ONLY and is not legal advice, does not form an attorney-client relationship, and should NOT be relied upon to take or refrain from taking any action. I am not your attorney. You should seek the advice of competent counsel before taking any action related to your inquiry.
There can be a warrant issued if a defendant fails to appear at a CREDITOR'S EXAMINATION in State District Court.
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