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Coverdale used bankruptcy to absolve loss/debt in JZK, Inc. case –
Declares a “victory” in using bankruptcy to avoid court-ordered debt –
How absurd! Since when is bankruptcy a “victory”?

Virginia Coverdale used bankruptcy to absolve court debt
Photo credit: Scott Roberts/Freedom Foundation.

– Editor’s note:
I do not call using bankruptcy to avoid court-mandated debt a “victory.”
I was taught by my banker father and my mother as well as in Business Schools that bankruptcy was a stain on one’s credit record and community standing, to be avoided at all costs. Today, bankruptcy is not uncommon and someone like Coverdale that uses bankruptcy as a means to an end to discharge her court case’s debt burden by calling this a victory is absurd! I call Coverdale’s misuse of the term “bankruptcy” as a “victory” FAKE NEWS or like Doublepseak from Orwell’s book 1984!

– Virginia Coverdale filed for bankruptcy to absolve Court debt
Subsequent to Coverdale filing for bankruptcy, JZK, Inc. filed a lawsuit against Coverdale’s alleged “abuse of process” possibly forming the basis of a “willful and malicious” injury. The court found Coverdale did not have improper motive in her defense and that JZK, Inc. did not prove Coverdale caused willful and malicious injury.
“Coverdale declared victory following the court ruling” rang-out the NVN headline.

– Introduction from the Bankruptcy Court document:
“JZK sued Coverdale in Thurston County Superior Court for violating the terms of a confidentiality provision in a contract, and Coverdale mounted an ultimately unsuccessful defense, raising counterclaims and affirmative defenses. JZK prevailed in its lawsuit against Coverdale and was awarded $600,021.00 in attorney’s fees and costs pursuant to an attorney’s fees provision in its contract [her debt was over $800,000 when accrued interest is considered]. When Coverdale filed a voluntary Ch. 7 petition for bankruptcy relief, JZK’s entire debt stood to be discharged pursuant to 11 U.S.C. §727.
In an effort to avoid the discharge of its attorney’s fee award, JZK has attempted to recast Coverdale’s conduct during its lawsuit as an “abuse of process,” which could potentially form the basis of a “willful and malicious” injury pursuant to 11 U.S.C. §523(a)(6).”
Read more

– JZK, Inc.’s Legal Affairs Manager responded with this to the Yelm Community Blog
“Ms. Coverdale filing for bankruptcy is hardly a victory.

“It is an admission that she got in way over her head and accumulated debts that she felt she was unable to repay at present or in the years ahead without intervention by the court. It is the financial equivalent of calling 911.”

Blogger Klein is a retired employee, current consultant to JZK, Inc., in 32nd year as a student of Ramtha.

Posted by Steve on December 27, 2017 at 12:01 am | Permalink

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