Posted on July 08, 2011
If I were a law school profession teaching an introductory consumer bankruptcy class I would consider the following question for a final exam: Would You Advise Casey Anthony To File Chapter 7 Bankruptcy? Assume That A Civil Jury Would Find Her Liable For Her Daughter’s Death, and Assume That Ms. Anthony Will Have Lucrative Media Related Income In The Future.
The answer to this question involves several interesting bankruptcy law issues. Qualification for Chapter 7 bankruptcy under the means test appears initially not to be a problem since Ms. Anthony has been unemployed. There are media reports that people have been sending her money while in jail. There may be an issue whether these receipts are gifts or income earned because of her celebrity and therefore countable as means test income. Her future income is probably too speculative to support a trustee’s claim that the future earnings should disqualify her from Chapter 7.
She has not current assets except donations received while in jail. Future earnings from personal services such as speaking or interviews are not bankruptcy assets. However, a trustee could argue that Casey Anthony’s name and her story are current assets that will generate future income. This intellectual property issue is most important in this bankruptcy analysis. The question is whether future media rights are too speculative to be considered current assets in bankruptcy. If a third party offers to pay the trustee to buy this interest the debtor, Casey Anthony, may not pursue such business opportunities unless there is a settlement providing her the majority of income therefrom.
Many of Casey Anthony’s liabilities may not be dischargeable. Fines associated with her criminal penalty payable to State are not dischareable. If someone brought an action on behalf of her deceased daughter the damages would not be dischargeable to the extent it was proven that the death was the result of a wilful and malicious injury. I’ve read that the real life Zanni the Nanni is suing Casey in state court; that debt probably is dischargeable. The bankruptcy court may lift the stay so that the Nanni lawsuit may proceed in state court. Casey apparently owes IRS money for 2008; that tax would not be dischargeable if the bankruptcy were filed before April, 2012.
I also read in the paper that the private search firm which worked with the State to search for the child is owed over $100,000. That debt is probably dischargeable. If the State can recover the $100,000 I do not think it would be a non-dischargeable fine because the debt represents a pecuniary loss rather than a fine.
Bankruptcy has several possible advantages for Casey Anthony. For example, bankruptcy would consolidate all possible claims in one court so that she could avoid being dragged into multiple court rooms to handle multiple claims. She may owe money to attorneys, consultants and expert witness who testified or assisted the defense- these debts could be discharged in bankruptcy (although she probably should reaffirm debts to her primary attorneys because she still needs legal advice).
There may be any number of people contemplating lawsuits against Casey Anthony for any number of reasons in anticipation of her future earnings. The applicable statute of limitations may be four years or more. If Casey Anthony files bankruptcy, all potential claimants would have only a few months to formulate and submit claims to the bankruptcy court. The bankruptcy would cut off all future claims, and Casey could proceed with her life without ambush lawsuits.
The analysis of this case is more complicated that I can discuss in a brief blog post. However, I think there are reasons for Casey Anthony to at least consider bankruptcy before she begins to seek future income and opportunities that will follow her acquittal.
By: Jonathon Alper
If I were a law school profession teaching an introductory consumer bankruptcy class I would consider the following question for a final exam: Would You Advise Casey Anthony To File Chapter 7 Bankruptcy? Assume That A Civil Jury Would Find Her Liable For Her Daughter’s Death, and Assume That Ms. Anthony Will Have Lucrative Media Related Income In The Future.
The answer to this question involves several interesting bankruptcy law issues. Qualification for Chapter 7 bankruptcy under the means test appears initially not to be a problem since Ms. Anthony has been unemployed. There are media reports that people have been sending her money while in jail. There may be an issue whether these receipts are gifts or income earned because of her celebrity and therefore countable as means test income. Her future income is probably too speculative to support a trustee’s claim that the future earnings should disqualify her from Chapter 7.
She has not current assets except donations received while in jail. Future earnings from personal services such as speaking or interviews are not bankruptcy assets. However, a trustee could argue that Casey Anthony’s name and her story are current assets that will generate future income. This intellectual property issue is most important in this bankruptcy analysis. The question is whether future media rights are too speculative to be considered current assets in bankruptcy. If a third party offers to pay the trustee to buy this interest the debtor, Casey Anthony, may not pursue such business opportunities unless there is a settlement providing her the majority of income therefrom.
Many of Casey Anthony’s liabilities may not be dischargeable. Fines associated with her criminal penalty payable to State are not dischareable. If someone brought an action on behalf of her deceased daughter the damages would not be dischargeable to the extent it was proven that the death was the result of a wilful and malicious injury. I’ve read that the real life Zanni the Nanni is suing Casey in state court; that debt probably is dischargeable. The bankruptcy court may lift the stay so that the Nanni lawsuit may proceed in state court. Casey apparently owes IRS money for 2008; that tax would not be dischargeable if the bankruptcy were filed before April, 2012.
I also read in the paper that the private search firm which worked with the State to search for the child is owed over $100,000. That debt is probably dischargeable. If the State can recover the $100,000 I do not think it would be a non-dischargeable fine because the debt represents a pecuniary loss rather than a fine.
Bankruptcy has several possible advantages for Casey Anthony. For example, bankruptcy would consolidate all possible claims in one court so that she could avoid being dragged into multiple court rooms to handle multiple claims. She may owe money to attorneys, consultants and expert witness who testified or assisted the defense- these debts could be discharged in bankruptcy (although she probably should reaffirm debts to her primary attorneys because she still needs legal advice).
There may be any number of people contemplating lawsuits against Casey Anthony for any number of reasons in anticipation of her future earnings. The applicable statute of limitations may be four years or more. If Casey Anthony files bankruptcy, all potential claimants would have only a few months to formulate and submit claims to the bankruptcy court. The bankruptcy would cut off all future claims, and Casey could proceed with her life without ambush lawsuits.
The analysis of this case is more complicated that I can discuss in a brief blog post. However, I think there are reasons for Casey Anthony to at least consider bankruptcy before she begins to seek future income and opportunities that will follow her acquittal.
By: Jonathon Alper
MAKE SURE AND VISIT Tobee's Blogs! 
i can see it now...4 million jane jone's! and, once again every single fictitious person she named during the trial can do the exact same thing.
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