Tuesday, December 4, 2012

But Lenny Dykstra has his own golden rule, apparently

So if you declare bankruptcy affair some business reverses, and you end up taking your stuff while it's under the control of the bankruptcy court, what can happen?

You'll get 6 1/2 months, a fine, and community service, according to the Los Angeles Times.

Former New York Mets star Lenny Dykstra was sentenced to an additional 61/2 months on Monday for federal bankruptcy fraud during a hearing....

Dykstra, who helped the Mets win the 1986 World Series, had pleaded guilty to looting his mansion of valuables before creditors could liquidate them....

On Monday, U.S. District Judge Dean Pregerson ordered Dykstra to pay $200,000 in restitution and to perform 500 hours of community service in addition to prison time. The 61/2 -month sentence was far lighter than the 30 months federal prosecutors had sought.

This is one thing that is often glossed over when bankruptcy is talked about. Once a person or a business declares bankruptcy, anything that the person or business does has to be approved by a bankruptcy court. Those who go into bankruptcy just to cancel all debts are in for a rude shock.
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