What steps to take if you are a creditor but your debtor is filing Chapter 7?

Get Legal Help Today

 Secured with SHA-256 Encryption

What steps to take if you are a creditor but your debtor is filing Chapter 7?

I just received a letter stating my debtor is filing bankruptcy. Where do I go from here? The court ordered payment for debt through small claims court last year and we still have not received full amount. Will this help me to get my money back? The letter states not to file a proof of claim unless I receive a notice to do so. Right above this, it says the deadline to file a complaint objecting to discharge is a date about 4 months from now. Does this mean I need to file a claim that he owes us money or that our collection is being discharged?

Asked on April 4, 2012 under Bankruptcy Law, Indiana

Answers:

MD, Member, California Bar / FreeAdvice Contributing Attorney

Answered 9 years ago | Contributor

You have entered the no payment zone unfortunately. What your debtor did is to abolish the many debts he owes, including yours. So you do have to file a proof of claim and unless your debt falls into the category of being exempt from bankruptcy or falls into a priority claim, you will need to wait while the claim is processed and the trustee goes through the accounting process of debts and assets. You cannot attempt to collect this debt while he is in bankruptcy because it would be a violation of the Fair Debt Collection Practices Act. You can certainly file a motion to be exempt from the motion to stay or to lift the stay while you attempt to collect payment but nothing can be done without court approval.


IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

Get Legal Help Today

Find the right lawyer for your legal issue.

 Secured with SHA-256 Encryption