From the Editor - Dismissal • NACTT Academy

From the Editor – Dismissal

By The Honorable William Houston Brown (Retired)

Debtor’s spending of settlement proceeds was material default and cause for dismissal with prejudice. The plan provided that settlement proceeds of a workers’ compensation claim would be paid to the trustee for the benefit of creditors, but the debtor spent those funds for his own use. The court found this to be material default of the plan’s provisions and cause to dismiss the case with prejudice to refiling for five years. Attorneys for the debtor in the bankruptcy case and workers’ compensation suit bear some responsibility and . . .

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