What to do if I won my case in small claims court but was told that it was a victory on paper only because the other party was going to be filling for bankruptcy?

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What to do if I won my case in small claims court but was told that it was a victory on paper only because the other party was going to be filling for bankruptcy?

They had not at the time of the decision. How do I know that this is true? How long does this part have to file? This does not seem fair.

Asked on August 27, 2014 under Bankruptcy Law, Wisconsin

Answers:

Anne Brady / Law Office of Anne Brady

Answered 6 years ago | Contributor

They may be waiting for you to attempt to collect on the judgment.  But keep in mind that not everyone qualifies to file for bankruptcy.  If they do file, take a close look at the filing to see if there are grounds to challenge it as a bad faith filing.  It is unlikely that your small claims judgment would be enough to push them over the edge into insolvency.  It does not seem fair, but there are cases in which people get out of paying judgments by filing for bankruptcy, but rarely on a small claims judgment.


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