Experience Visit http://www.bklaw.com for more information on bankruptcy in general and Mark J. Markus in particular. Many questions are answered on the web page (hint, hint). The Markus webpage also contains more information on
Education/Credentials J.D., University of Arizona 1990. B.A. Economics, California State University, Northridge 1986. For more details please click here
Question I am the owner of a S Corp and was awarded a $20,000 judgement in the state of Virginia against one of my customers (also a corporation based in Maryland)on 08/17/2009. My customer filed Chapter 11 on 09/28/2009. Does my judgement qualify as priority? If so, would this still be the case if the judge did not sign the judgement until 09/28/2009 or later?
Answer The judgment is definitely not a priority claim. If you converted the judgment into a lien more than 90 days prior to the filing of the bankruptcy case, then you may have a perfected security interest against whatever assets the lien attached to. IF the judge didn't enter the order on the judgment until after the CH. 11 case was filed, then there is no judgment.
Either way, it looks like you (your corporation) just has a general unsecured claim for whatever the amount is that is owed to your corporation.
