Utah Investor Tries to Stop Bankruptcy Proceedings

On Monday, Judge R. Kimball Mosier in U. S. Bankruptcy court heard arguments from a Utah investor that stated that Darryl Syversen was filing his bankruptcy in bad faith. The investor was also a creditor of Syversen’s and obviously concerned about the fact that the debts owed her could be forgiven. The evidence the investor brought forth is that Syversen had called some of his creditors in relation to his real estate business and said that he would make good on their debts after the bankruptcy proceedings were completed. If this were true it would mean that Syversen had the money to pay back debts, and was thus seeking the bankruptcy in bad faith. Although bad faith can be grounds for not allowing a bankruptcy the judge was looking for case law to back up the investors arguments which she did not have, and thus the case was not dismissed. This is an important reason why interested parties should hire attorneys because with the proper help this investor might have been successful in getting the bankruptcy case dismissed, but with her inexperience with the legal system she believed she could simply persuade the judge with a layman’s argument.

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