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5. Schlesinger’s and Petitioner’s Bankruptcies
In January 1991, Schlesinger filed a petition with the
Bankruptcy Court for the Western District of Texas under chapter
11 of the U.S. Bankruptcy Code. On July 11, 1991, petitioner
filed a petition with the Bankruptcy Court for the Western
District of Texas under chapter 7 of the U.S. Bankruptcy Code.
Sunbelt tried to collect on the note until petitioner filed
his bankruptcy petition. Petitioner was no longer liable on the
Sunbelt note at the time of trial in the instant case.
On the schedules filed with the Bankruptcy Court in July
1991, petitioner listed as his personal property (among other
things) the pending Federal suit against Sunbelt (exact value
unknown), and his GSD partnership interest, which he valued at
zero. Petitioner listed the following debts in his bankruptcy
petition: Taxes he owed to other authorities ($3,512), secured
claims ($534,000), and unsecured claims without priority
($60,060,294), including $23,535,000 for the Sunbelt note.
Under the GSD limited partnership agreement, the filing of
the petition in bankruptcy by petitioner terminated the
partnership.1 Petitioner was granted a discharge in bankruptcy
1 Secs. 13.1 and 13.1.2 of the GSD Limited Partnership
Agreement state in pertinent part:
“The partnership shall terminate upon the * * *
bankruptcy * * * of the General Partner * * * unless
within (90) days after the effective date of such * * *
(continued...)
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