Bankruptcy settlement unfair

An online friend of mine is going to be short changed by an unfair bankruptcy settlement. He pointed me to a recent article about it-

LOUISVILLE, Ky. - A Louisville lawyer whose firm filed bankruptcy with $16.6 million in debt would pay most of his creditors less than 2 cents on the dollar, under a proposed settlement.

Federal regulators said in court records that the $394,583 settlement would allow Ron Sheffer to “purchase” a discharge.

People work hard only to be screwed over by low life’s that run up unbelievable debts like this and then only have to pay a pittance back. It’s not right!!

Sheffer, 67, has been blocked from discharging his debts because a federal bankruptcy judge ruled that he fraudulently diverted assets to his wife.

The b@#’~~d, owes millions, but tries to rip off his creditors. I hope they take this low life to the cleaners.

The U.S. Bankruptcy Trustee said allowing Sheffer to settle his case would violate public policy and bankruptcy law. Sheffer’s lawyer and the creditors who support the deal say it is the fairest and least expensive way to resolve the case.

My friend doesn’t think that, he’ll loose a lot of money!

They said that Sheffer could retire, leaving creditors with no wages to garnish if he is barred from discharging his debts through bankruptcy.

A hearing is scheduled for June 27 in U.S. Bankruptcy Court in Louisville.

Under the proposed agreement, Sheffer would pay $80,000 to Ohio Valley and $114,583 to Franklin Bank & Trust Co. of Simpson County. Sheffer’s wife, Anne, and his son, Tom, would pay $200,000 to the Chapter 7 trustee, who would divide it among other creditors.

In court papers, the U.S. Bankruptcy Trustee said that would be unfair because Ohio Valley would be paid 32 percent of the amount it is owed and Franklin 4 percent, while the other creditors, who are owed a combined $13.7 million, would get only 1.4 cents on the dollar.

Typical, the small guys get the crumbs. Everything about this just stinks and should not be happening.

My friend expects to do badly out of this one, bankruptcy shouldn’t be so easy.

Article source www.kentucky.com

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