Civil Litigation

The Florida Bar Journal Publishes Ayala’s Attorneys Article on Unliquidated Securities Claims in Adversarial Bankruptcy Proceedings

By December 21, 2021 No Comments

Ayala is proud to announce that the prestigious The Florida Bar Journal has published a legal article from two of its attorneys regarding the dischargeability of unliquidated claims in adversary proceedings in Bankruptcy Court. 

The article focuses on the applicability of securities claims under Section 523(a)(19) in Chapter 7 cases, and how the 60-day deadline fo file a claim in Bankruptcy does not apply to these type of claims. 

As stated in the article: “Imagine a plaintiff in state court that has a viable claim for violations of federal and Florida securities laws against a defendant. Shortly after the state court complaint is filed, the defendant files for bankruptcy under Ch. 7. This filing stays (freezes) the state court case. The state court plaintiff then weighs his options and decides to file an adversary proceeding in the bankruptcy court where the defendant’s case is pending. . . .While all this plays out, Bankruptcy Rule 4007(c) — the 60-day deadline for filing a complaint objecting to the dischargeability of debts — has lapsed. What options, if any, does our state court plaintiff have?” 

The article discusses the options and relevant precedent addressing the interplay between Section 523(a)(19) and Rule 4007(b). 

The article can be found here: Article

For more information regarding adversary proceedings in Bankruptcy Court and or general commercial litigation matters please contact attorney Eduardo A. Maura at eduardo@ayalalawpa.com or call 305-570-2208 to schedule a case evaluation. 

For more information about our practice areas visit www.lawayala.com/practice-areas. 

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