HLNT/NIR/Walters Lawsuits Update:
Yesterday, Walters lawyer filed a notice of withdrawal of the motion filed for an automatic stay based upon Humphries Bankruptcy.
Here are the facts:
1) Humphries filed a Chapter 11 Bankruptcy on the 22nd of April, but because Humphries had no money to satisfy a Chapter 11 proceeding, the Bankruptcy Trustee filed a Motion for Dismissal on the 23 of May. The Bankruptcy was dismissed on the 20th of June, and the case closed on the 4th of August. This is case # 11-41284, Eastern District of Texas, United States Bankruptcy Court. The Motion for Dismissal was Document #21 and can be viewed on the PACER system.
2) Humphries filed a Chapter 7 Bankruptcy case on the 2nd of August, but the case was dismissed on the 16th of August by order of the Court due to failure of the Debtor to submit payment of a required filing fee. The case was terminated on the 31st of August. The order in question is Document #11, the case is # 11-42409, Eastern District of Texas, United States Bankrutpcy Court.
3) Humphries filed a Chapter 7 Bankruptcy case on the 19th of October, the case is still ongoing. This time, Humphries filed a waiver of the filing fee, Document #4. The case is # 11-43172, Eastern District of Texas, United States Bankruptcy Court.
4) From the United States Bankruptcy Code (Title 11, U.S. Code, Section 362, "Automatic Stay", Paragraph (c) "Except as provided in subsections (d), (e), (f), and (h) of this section——" (4)(A)(i) if a single or joint case is filed by or against a debtor who is an individual under this title, and if 2 or more single or joint cases of the debtor were pending within the previous year but were dismissed, other than a case refiled under section 707(b), the stay under subsection (a) shall not go into effect upon the filing of the later case; ..."
Based upon the above 4 facts, Humphries filed two other instances of bankruptcy within the last year, those cases were dismissed, so therefore, Humphries was not eligible for protection of the automatic stay.
As there was no Automatic Stay in effect, Walters Lawyer had to withdraw his motion.
Interpretation:
Walters has been using various legal maneuvers to try to derail HLNT Counter Claims and 3rd Party Action, as well as run up the legal bills for HLNT. This last attempt backfired badly on Walters and his lawyer had to withdraw the Motion or face Censure and/or Sanctions from the Court. Walters doesn't really care, as he would just go out and hire a new lawyer, but his lawyer cared. Walter's now has to fall back on his Motion to Compel Arbitration, but unfortunately for him, HLNT can request a Court trial over the Arbitration Proceedings in California. More legal expense, but Walters can foot the bill as he is fighting a losing battle.
Last thing of note, HLNT can still prefer a complaint against Walters, Humphries, and NIR/Ribotsky, which in turn would lead to criminal charges being filed against the three. That is, if the Feds don't decide to do that anyway.
The opinions expressed here in are my own and investors should perform their own due diligence and make their own investment decisions appropriately.
