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New Jersey Chapter 7: Casey Anthony files bankruptcy

| May 20, 2013 | Chapter 7 |

Casey Anthony has filed bankruptcy in her home state, hoping to get a fresh start financially. However, some of the creditors that she has listed on her Chapter 7 court documents are not happy about it. One creditor has already filed an objection, and two others are reportedly considering doing so.

Many in New Jersey may not be aware that all three creditors were involved in litigation against Anthony in state court prior to the filing of her bankruptcy. Two individuals have defamation cases pending against Anthony. The other creditor is Equusearch, the private firm hired to locate Anthony’s daughter. Equusearch says Anthony owes them $100,000 in expenses from their search.

The company says that it had to turn down other clients who needed their help in order to focus their attention on the Anthony case. The company has filed an objection with the bankruptcy court, saying that its claim should not be discharged since Anthony fraudulently engaged Equusearch’s services since she knew her daughter was dead. For this reason, Equusearch believes Anthony should not be allowed to obtain a discharge of this debt.

Anytime someone in New Jersey, or any other state, files for Chapter 7 bankruptcy, any pending lawsuits are put on hold until the completion of the bankruptcy case. If a creditor believes it is entitled to be paid regardless of the bankruptcy, they may file an objection to that claim being discharged. Once both sides have presented their arguments, it will be up to the judge to determine whether to allow the debt to be discharged. It may be some time before the public finds out whether Equusearch, and possibly the two individuals considering objections, will be able to continue to pursue their financial claims against Anthony.

Source: Orlando Sentinel, “Search group objects to Casey Anthony’s bankruptcy discharge,” Jeff Weiner, May 6, 2013

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