The State Worker

Chronicling civil-service life for California state workers

June 29, 2011
What's next for Don Novey's bankruptcy?

Several blog users have asked what's next for Don Novey, the former head of the state correctional officers' union who has filed for bankruptcy.

According to this schedule of deadlines and meeting dates, creditors and the bankruptcy trustee have until Thursday to file objections to Novey's filing. A hearing, should it be needed, is already set for July 19 on the sixth floor of the federal courthouse in Sacramento.

From the contentious tone of the creditors' hearing last week, we expect California Correctional Peace Officers Association attorney Barry Spitzer will file an objection on behalf of his client.

We wouldn't be surprised if he resurrects questions he raised in the hearing about the Noveys' cash and bank accounts (they told the court that they have about $2,700 in total) and whether their Scottsdale, Ariz., condo is truly a rental property. The Noveys said last week that it is, even though they bought it in 2006 but have never rented it out. (A rental property that generates revenue might not be seized in bankruptcy, whereas a second residence, such as a winter home, could be.)

Novey, CCPOA's former president, adjusted his bankruptcy filing in Sacramento's federal court last week. The amended documentation, which you can view here, adds minor property holdings, increases the estimated value of a pair of boxing gloves signed by Mohammed Ali from $250 to $1,200 and offers proof for the $5,000 estimated value of family jewelry, among other changes.

The amended filing also adds two timeshare properties, one in Cancun and another in Hawaii, worth a total $2,200.

Novey and his wife, Carol, filed Chapter 13 to avoid paying about $181,000 in credit card and other unsecured debts, including $20,000 from a stipulated settlement with CCPOA. The plan they filed with the bankruptcy court pays $82,000 owed in state and federal taxes and reschedules debts on their Rocklin home and the Arizona condo.

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About The State Worker

Jon Ortiz The Author

Jon Ortiz launched The State Worker blog and a companion column in 2008 to cover state government from the perspective of California government employees. Every day he filters the news through a single question: "What does this mean for state workers?" Join Ortiz for updates and debate on state pay, benefits, pensions, contracts and jobs. Contact him at (916) 321-1043 and at jortiz@sacbee.com.

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