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</o:shapelayout></xml><![endif]--></head><body lang=EN-US link=blue vlink=purple><div class=WordSection1><p class=MsoNormal><span style='font-size:11.0pt;font-family:"Calibri","sans-serif";color:#1F497D'>Maybe if you can create secured party status, and they don’t file bankruptcy within 90 days (or 1 year if insider) – but if they do, you’re out of luck and the lien is avoidable. You can’t stipulate around it.<o:p></o:p></span></p><p class=MsoNormal><span style='font-size:11.0pt;font-family:"Calibri","sans-serif";color:#1F497D'><o:p> </o:p></span></p><p class=MsoNormal><span style='font-size:11.0pt;font-family:"Calibri","sans-serif";color:#1F497D'>Stipulating to non-dischargeability is a risky game. It will be re-examine by the bankruptcy court, which may or may not agree, and has an independent duty to inquire because of its duty to ALL creditors. Your best odds are to stipulate to the underlying facts which comprise the elements that fit within one (or more) of the exceptions to discharge, and then from an evidentiary standpoint you’re dealing with admissions. But if you overdo it (several belts and suspenders) a bankruptcy court is liable to find it contrived and just throw it out and start over. Remember, bankruptcy courts are fundamentally courts of equity.<o:p></o:p></span></p><p class=MsoNormal><span style='font-size:11.0pt;font-family:"Calibri","sans-serif";color:#1F497D'><o:p> </o:p></span></p><p class=MsoNormal><span style='font-size:11.0pt;font-family:"Calibri","sans-serif";color:#1F497D'>However, just like bankruptcy courts ignore (and properly so – duty to all creditors as noted above) ipso facto clauses about bankruptcy, they are not bound by a state court’s determination on dischargeability or even the underlying facts which would support it. A good analogy is alimony v. property settlement v. child support (and I’m NOT a divorce lawyer). Bankruptcy courts look beyond the language of the parties and the court and can re-decide what box it “really” fits in.<o:p></o:p></span></p><p class=MsoNormal><span style='font-size:11.0pt;font-family:"Calibri","sans-serif";color:#1F497D'><o:p> </o:p></span></p><p class=MsoNormal><span style='font-size:11.0pt;font-family:"Calibri","sans-serif";color:#1F497D'>So, what you can do, is to try stipulating to facts, without a lot of inflammatory adjectives and adverbs, cross your fingers and hope for the best. You still have to file the dischargeability action timely and be prepared to try the case. With some admitted facts, you’ve got a leg up, but it’s not a lock.<o:p></o:p></span></p><p class=MsoNormal><span style='font-size:11.0pt;font-family:"Calibri","sans-serif";color:#1F497D'><o:p> </o:p></span></p><p class=MsoNormal><span style='font-size:11.0pt;font-family:"Calibri","sans-serif";color:#1F497D'>Good luck.<o:p></o:p></span></p><p class=MsoNormal><span style='font-size:11.0pt;font-family:"Calibri","sans-serif";color:#1F497D'><o:p> </o:p></span></p><p class=MsoNormal><b><span style='font-size:13.5pt;font-family:"Calibri","sans-serif";color:#0000A0'>Bruce D. Partington</span></b><span style='font-size:10.0pt;font-family:"Calibri","sans-serif";color:black'><o:p></o:p></span></p><p class=MsoNormal><span style='font-size:10.0pt;font-family:"Calibri","sans-serif";color:#1F497D'>Clark</span><span style='font-size:11.0pt;font-family:"Calibri","sans-serif";color:#1F497D'> </span><span style='font-size:10.0pt;font-family:"Calibri","sans-serif";color:#1F497D'>Partington<o:p></o:p></span></p><p class=MsoNormal><span style='font-size:11.0pt;font-family:"Calibri","sans-serif";color:#1F497D'><a href="mailto:bpartington@cphlaw.com" title="blocked::mailto:bpartington@cphlaw.com"><span style='font-size:10.0pt;color:#1F497D'>bpartington@cphlaw.com</span></a></span><span style='font-size:10.0pt;font-family:"Calibri","sans-serif";color:#1F497D'><o:p></o:p></span></p><p class=MsoNormal><span style='font-size:10.0pt;font-family:"Calibri","sans-serif";color:#1F497D'>Direct: 850-432-1399<o:p></o:p></span></p><p class=MsoNormal><span style='font-size:10.0pt;font-family:"Calibri","sans-serif";color:#1F497D'>Fax: 850-432-7340<o:p></o:p></span></p><p class=MsoNormal><i><span style='font-size:9.0pt;font-family:"Calibri","sans-serif";color:#1F497D'>*Board Certified in Construction Law<o:p></o:p></span></i></p><p class=MsoNormal><span style='font-size:10.0pt;font-family:"Calibri","sans-serif";color:#1F497D'> <o:p></o:p></span></p><p class=MsoNormal><span style='font-size:7.5pt;font-family:"Calibri","sans-serif";color:#1F497D'>NOTICE: This e-mail message and any attachments are private communication sent by the law firm of Clark Partington Hart Larry Bond & Stackhouse, and may contain confidential, legally privileged information meant solely for the intended recipient. If you are not the intended recipient, you are hereby notified that any use, dissemination, distribution or copying of this communication is strictly prohibited. Please notify the sender immediately by replying to this message, and delete the e-mail and any attachments from your system. Thank you.<o:p></o:p></span></p><p class=MsoNormal><span style='font-size:11.0pt;font-family:"Calibri","sans-serif";color:#1F497D'><o:p> </o:p></span></p><div style='border:none;border-top:solid #B5C4DF 1.0pt;padding:3.0pt 0in 0in 0in'><p class=MsoNormal><b><span style='font-size:10.0pt;font-family:"Tahoma","sans-serif"'>From:</span></b><span style='font-size:10.0pt;font-family:"Tahoma","sans-serif"'> clc-discussion-bounces@lists.flabarrpptl.org [mailto:clc-discussion-bounces@lists.flabarrpptl.org] <b>On Behalf Of </b>Mark Young<br><b>Sent:</b> Wednesday, June 13, 2012 7:43 PM<br><b>To:</b> Construction Law Discussion<br><b>Subject:</b> [CLC-Discussion] Bankruptcy Proof Agreed Judgments<o:p></o:p></span></p></div><p class=MsoNormal><o:p> </o:p></p><div><p class=MsoNormal>Hypthetical: Parties are working toward a settlement agreement, to be incorporated in a Final Judgment for a contract dispute. Defendant has insufficient funds to make a lump payment of the Final Judgment and requires a payment plan that will take years. Plaintiff is concerned with Defendant's ability to pay the judgment. Is there any language that can be placed in a settlement agreement that will protect Plaintiff in the event Defendant files for bankrupty (non-dischargeable debt, secured creditor status, etc.)?<o:p></o:p></p></div><div><p class=MsoNormal> <o:p></o:p></p></div><div><p class=MsoNormal>Thanks,<o:p></o:p></p></div><div><p class=MsoNormal> <o:p></o:p></p></div><div><p class=MsoNormal>Mark<o:p></o:p></p></div></div></body></html>