Chapter 7 Bankruptcy question

AAF Striker · Post by **AAF Striker** » Thu Sep 20, 2007 9:16 am

Approximately 2 weeks ago we went to small claims court and won. The lady didn't show up (after she had postponed it to that date), and they ruled in our favor in the amount of $1500.

Fast forward to yesterday and we received a letter from her attorney that she has filed for Chapter 7 bankruptcy. The letter said that we are supposed to meet (with what I assume would be other creditors of hers) near the end of the month.

I was wondering if she still has to pay us now that she has filed for bankruptcy. Will she still have to pay it all? Some of it? Or would they wipe it out completely? I am just kind of wondering what I should be prepared for...

Comtrad · Post by **Comtrad** » Thu Sep 20, 2007 9:20 am

I would assume this means that she won't have to pay you, but I don't know much about bankruptcy. Though I do think they changed the laws around recently to make it harder for people to skip out on bills through filing.

Izzo · Post by **Izzo** » Thu Sep 20, 2007 9:28 am

The meeting you're talking about is called the 341 meeting, or the meeting of creditors....you can object to the bankruptcy at that point but it's pretty useless....it's usually at that point I tell mine to either reaffirm the debt (they agree not to discharge the debt) or surrender their car/house/boat or whatever.

I hate to say it but it looks like you're screwed...no scumbag attorney in their right mind would advise their client to reaffirm a judgment but it's worth a shot.

You can always file a proof of claim with the court in the event that she doesn't qualify for filing or there are assets that can be sold....even then you'll only get a pro-rata(small portion) share of the amount you're owed(depending on the number of secured and unsecured creditors). Welcome to the wonderful world of loss control

Oh....verify that she actually filed with the court.....it could be a load of crap. Get a case #...it'll start 07- XXXXXX

Far-N-Wide · Post by **Far-N-Wide** » Thu Sep 20, 2007 9:33 am

Write a letter to her attorney and ask that same question?

Or better yet ask when his / her client going to make good on money owed to you as directed by the court.

Then expect long delays while she sells everthing and hides her wealth among relitives and friends. My sister's ex-husband, decleared chapter 7. sold his chopper to a bud for next to nothing (had a reciept), claiming that was all he could get for it. He did this for most evething he had of value.

There was some contesting of the money he recieved for the items he sold. But the courts didn't go after him to see to it that my sister got her settlement amout awarded to her. She had to settle for a lot less.

Then by, somehow this exhusband got all his stuff back. He had to live poorly and took work at cash jobs under the table to have his old standard of living and life style back.

He did get caught for what he had done. But the court did not really go after him. As the only person to want anything was my sister.

If there are more then one person or business intrested in claims on the lady's estate you are trying to get money from. Then get in line and have a good lawyer.

In my sisters case, her lawyer got 70% of the exhusbands wealth in lawyer fees.

Dan · Post by **Dan** » Thu Sep 20, 2007 9:37 am

Izzo wrote: Oh....verify that she actually filed with the court.....it could be a load of crap. Get a case #...it'll start 07- XXXXXX

thats good advice

Izzo · Post by **Izzo** » Thu Sep 20, 2007 9:40 am

Far-N-Wide wrote:Write a letter to her attorney and ask that same question?

Or better yet ask when his / her client going to make good on money owed to you as directed by the court.

Then expect long delays while she sells everthing and hides her wealth among relitives and friends. My sister's ex-husband, decleared chapter 7. sold his chopper to a bud for next to nothing (had a reciept), claiming that was all he could get for it. He did this for most evething he had of value.

There was some contesting of the money he recieved for the items he sold. But the couts didn't go after him to see to ih my sister got her settlement amout awarded to her by the courts. She had to settle for a lot less.

Then by some how this exhusband got all his stuff back. He had to live poorly and took work at cash jobs under the table to have his old standard of living and life style back.

He did get caught for what he had done. But the court did not really go after him. As the only person to want anything was my sister.

If there are more then one person or business intrested in claims on the lady's estate you are trying to get money from. Then get in line and have a good lawyer.

In my sisters case, her lawyer got 70% of the exhusbands wealth in lawyer fees.

Good luck getting any of that done with bankruptcy reform....any trustee with a half ounce of brains would see right through that....scream abuse and dismiss the case....

Izzo · Post by **Izzo** » Thu Sep 20, 2007 9:44 am

Something I found pertaining to Michigan ....things are a little different everywhere but the core is still the same

Chapter 7

Under the current Bankrupty laws, Chapter 7 cases in the Western District of Michigan take approximately 4 to 6 months from the date of filing to the date of discharge.

The Automatic Stay
Once your case is electronically filed by our office on your behalf, an automatic stay is issued by the court. The automatic stay is a court order which prohibits:

1. Garnishments of wages and taxes;
2. Foreclosures/Sheriffs Sales;
3. Repossessions;
4. Law suits; and
5. Other collection methods by your creditors.

Within 7 to 14 days of your case being filed you will receive notice from the court and our office. This notice verifies that your case is filed and instructs you to attend a Meeting of creditors.

The Meeting of Creditors (341 Hearing)

The Meeting of Creditor's is a hearing that you must attend. You will be required to Bring a photo ID, and proof of your social security number (tax return, S.S. card, paystub, etc). At the hearing, you are placed under oath, and questioned by your creditors that attend and the Chapter 7 Trustee. The Trustee represents your creditor's interest. In most cases no creditors actually attend the meeting of creditors. If you fail to attend we will do our best to have the hearing adjourned. If you refuse to cooperate or attend the hearing your case may be dismissed, or you can incur additional attorney fees, or costs.

During the Meeting of Creditors

The Trustee is in charge of the Meeting of Creditors. He will place you under oath and I will question you briefly. Next, the Trustee and any of your creditors that attend will have an opportunity to briefly question you. Note, that compared to normal court sessions the Meeting of Creditors is a relatively informal process which the actual Judge does not even attend.

Some common questions include:

1. Did you meet with your attorney and discuss the implications of the different types of bankrutpcy;

2. Did you list all of your income, assets and debts?

3. How did you determine the value of your home and land?

4. Are you expecting an inheritance?

5. Have you given any valuable property away recently?

6. Did you repay family members any money recently?

Following the Meeting of Creditors

Once the meeting of creditors meeting is concluded, you will have about 60-90 days before your discharge is granted. During this time you can do the following:

* Add any creditors to your bankruptcy
* Sign and file reaffirmation agreements
* Change jobs, move, file taxes, buy a car
* Surrender vehicles you intend to give back
* Reinstate your mortgage agreement

After 60-90 days elapses, most cases are discharged. The Discharge Order is the Court's order formally releasing you of your obligation to pay certain debts. Keep this order as if it were a birth certificate, or marriage license. Any time a creditor calls or writes, you will provide the discharge date, and case number to settle their claim. Read the Discharge Order back and front. This will answer many of your questions.

Always keep a file of the following documents:

* The notice of filing bankruptcy/meeting of creditors
* The Bankruptcy petition filed with the court
* The Notice of automatic stay
* The Discharge order

These documents will allow you to settle any claim creditors may bring after the case is closed.

Paft · Post by **Paft** » Thu Sep 20, 2007 5:19 pm

I thought that court judgements weren't covered under bankruptcy, but I could be wrong.

Izzo · Post by **Izzo** » Thu Sep 20, 2007 6:13 pm

depends on the kind of judgment ie:federal/state revenues..student loans and child support are among those that aren't and in some cases deficiencies on mortgages...but yeah they can be discharged. God knows I've lost too many to bankruptcy not to know.....

horsemen_ · Post by **horsemen_** » Fri Sep 21, 2007 12:12 am

AAF Striker wrote:Approximately 2 weeks ago we went to small claims court and won. The lady didn't show up (after she had postponed it to that date), and they ruled in our favor in the amount of $1500.

Fast forward to yesterday and we received a letter from her attorney that she has filed for Chapter 7 bankruptcy. The letter said that we are supposed to meet (with what I assume would be other creditors of hers) near the end of the month.

I was wondering if she still has to pay us now that she has filed for bankruptcy. Will she still have to pay it all? Some of it? Or would they wipe it out completely? I am just kind of wondering what I should be prepared for...

you cannt file bankruptcy on a court order settelment i know because 6 yr ago i filed also if that was the case oj would and be done with the goldmens court order settlement

Izzo · Post by **Izzo** » Fri Sep 21, 2007 12:19 am

horsemen_ wrote:you cannt file bankruptcy on a court order settelment i know because 6 yr ago i filed also if that was the case oj would and be done with the goldmens court order settlement

Yes, you can. I've been in collections for 16 years....trust me ...it can be done. OJ has never filed bankruptcy.

Izzo · Post by **Izzo** » Fri Sep 21, 2007 12:24 am

Generally, an individual who files for bankruptcy can have court-ordered judgments discharged, meaning the judgments do not have to be paid. Debts due to fraud, however, are an exception. The United States Bankruptcy Code prohibits a debtor from discharging liabilities incurred through "false pretense, false representation or actual fraud."

Still, this is not an automatic exception. If your beau tries to declare bankruptcy to avoid paying your judgment, you, as the creditor, must ask the federal bankruptcy court to except your judgment from discharge in the bankruptcy. You must take action to prevent your claim from being discharged, or the bum will get away with not paying.

Making sure your original judgment order includes language about the findings of fraud may help. But if the bankruptcy court doesn't accept the previous court's finding of fraud, you may have to prove it all over again.

http://www.lovefraud.com/06_legalSystem ... ments.html

Like I said ...appear at the 341 and beg the judge not to discharge it. It might just happen. I've been to dozens of these meetings.

horsemen_ · Post by **horsemen_** » Fri Sep 21, 2007 5:30 am

Izzo wrote:Yes, you can. I've been in collections for 16 years....trust me ...it can be done. OJ has never filed bankruptcy.

the oj remake was he would file to make the dept go away

AAF Striker · Post by **AAF Striker** » Fri Sep 21, 2007 7:08 am

Thanks for the info... the lady basically stole $1500 from us, so I am not sure if that will make a difference when the meeting comes around...

Russell · Post by **Russell** » Sat Sep 22, 2007 12:00 am

Found this too.

http://www.sandersparks.com/CM/NewsandE ... sp?topic=2

At the bottom of the webpage.

Beware of Bankruptcy
If a person or a business declares bankruptcy under Chapter 7 of the Federal Bankruptcy Act and lists you as a creditor, your right to recover a court judgment is cut off, along with most of the other debtors' rights. (If your judgment was based on a secured loan, however, you do have the right to recover the property pledged as security).

One big exception to this general rule occurs if your judgment was obtained because you or your property were injured by the malicious behavior of the defendant. In this situation, your right to collect your judgment should survive the bankruptcy -- but you may need to intervene (file a claim) in the bankruptcy proceeding to be sure it does. An example of malicious behavior would be someone getting drunk and then attacking and injuring you.

Izzo · Post by **Izzo** » Sat Sep 22, 2007 12:18 am

Russell wrote:Found this too.

http://www.sandersparks.com/CM/NewsandE ... sp?topic=2

At the bottom of the webpage.

Beware of Bankruptcy
If a person or a business declares bankruptcy under Chapter 7 of the Federal Bankruptcy Act and lists you as a creditor, your right to recover a court judgment is cut off, along with most of the other debtors' rights. (If your judgment was based on a secured loan, however, you do have the right to recover the property pledged as security).

One big exception to this general rule occurs if your judgment was obtained because you or your property were injured by the malicious behavior of the defendant. In this situation, your right to collect your judgment should survive the bankruptcy -- but you may need to intervene (file a claim) in the bankruptcy proceeding to be sure it does. An example of malicious behavior would be someone getting drunk and then attacking and injuring you.

Right, like I mentioned above...he needs to argue to the judge that it not be discharged and he needs to file a claim....even then, if there's assets to be sold, he'd only get a pro-rata share(funds divided amongst creditors based on balance owed)....and that's only if her request for discharge is denied for any of those various reasons you mentioned..... 99.9999% of the time they're discharged.

zooner · Post by **zooner** » Sat Sep 22, 2007 12:55 am

I will handle the situation for you.