Casey Anthony filed for bankruptcy protection this week. She apparently owes over $500,000 in legal fees. She also owes the IRS and has a couple of lawsuits involving defamation against private individuals. The legal fees should be dischargeable in the bankruptcy. The IRS might be dischargeable depending on the year the tax was assessed and/or whether the IRS asserted any fraud penalties against Ms. Anthony. What will be interesting is the lawsuit. The lawyers that represent the plaintiffs who are suing Casey Anthony have told the media that they intend on going forward with the lawsuit and asking the bankruptcy court to declare all or part of the debt nondischargeable.
Most debts to that are subjects of lawsuits are nondischargeable. One of the few exceptions falls under 11 U.S.C. § 523(6) which requires that a willful and malicious injury by the debtor occur to the plaintiff. If the plaintiffs can prove that Casey Anthony’s acts were willful and malicious, the bankruptcy judge can make a finding that the debts are nondischargeable. We’ll keep you posted as we get more news.
If you need a bankruptcy lawyer in Cape Coral, call the Rothrock Law Firm at (239) 206-1948.