QUESTION
Can I sue a co-worker who just filed for Chapter 13 Bankruptcy for a loan?
Asked on Jul 12th, 2012 on Bankruptcy - New Jersey
19 ANSWERS
Bankruptcy Law Attorney serving Huntington Woods, MI
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Austin Hirschhorn, P.C.
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If you received a notice from the bankruptcy court about the Chapter 13 filing it contained a paragraph labeled "Creditors May Not Take Certain Actions". The first sentence of that paragraph reads as follows: "In most instances, the filing of the bankruptcy case automatically stays certain collection and other actions against the debtor, the debtor's property, and certain co-debtors". Your right to sue the debtor has been automatically stayed by the bankruptcy filing and if you were to file suit against the debtor sanctions could be imposed against you. The answer to your question is "no".
Answered on Aug 19th, 2012 at 10:01 PM
You can still attempt to sue in district court, but once a matter has been filed under chapter 13, you become a creditor of the debtor and must file as a creditor with the trustee handling the chapter 13 proceedings. A district court judge can actually withhold judgment on a pending bankruptcy matter until the bankruptcy proceedings have been finalized. As a creditor, you can enter into a payment plan with the debtor to be repaid over time.
Answered on Aug 13th, 2012 at 5:46 PM
Bankruptcy Attorney serving Seattle, WA
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The Law Office of Marc S. Stern
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No, you can file a claim.
Answered on Aug 13th, 2012 at 4:17 PM
It is too late. The automatic stay of the bankruptcy court is now in effect. But please file a claim with the court.
Answered on Aug 13th, 2012 at 3:16 PM
Family Attorney serving Henderson, NV
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Harris, Yug & Ohlinger
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No. Upon filing a bankruptcy, an automatic stay is created against any collections attempts - that includes lawsuits, unless you have the permission of the Bankruptcy Court.
Answered on Aug 13th, 2012 at 2:38 PM
Chapter 7 Bankruptcy Attorney serving Clinton, MS
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Timothy Kevin Byrne Attorney at Law
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No. Co-worker is protected under the Bankruptcy Code unless her plan gets dismissed. Submit a claim to the Court.
Answered on Aug 13th, 2012 at 2:33 PM
Brett Alexander Pedersen
No, you can file a claim in the bankruptcy for now.
Answered on Aug 13th, 2012 at 2:12 PM
No. You must file and pursue your claim in the bankruptcy court.
Answered on Aug 13th, 2012 at 2:10 PM
Real Estate Attorney serving South Jordan, UT
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James T. Dunn P.C.
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The automatic stay prevents your suit without BK court approval.
Answered on Aug 13th, 2012 at 2:09 PM
You can only seek to collect that through the bankruptcy court now.
Answered on Aug 13th, 2012 at 2:05 PM
Appellate Attorney serving Grosse Pointe Farms, MI
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Musilli Brennan Associates, PLLC
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You will have to make a claim in her bankruptcy. You cannot sue due to the automatic stay. I hope you have proof of the debt. Beyond that, I would have to have many, many more details in order to form a firm opinion.
Answered on Aug 13th, 2012 at 2:03 PM
Family Attorney serving Hurst, TX
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Law Office of Eric A. Maskell
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No. You can not sure her while she is in Chapter 13. However, you can file a proof of claim in her cause and if money is available for unsecured creditors you might receive a dividend. Also, depending on the circumstances you may be able to file an adversary proceeding to have the debt considered non-dischargeable. You would need to contact a bankruptcy attorney.
Answered on Aug 13th, 2012 at 2:02 PM
Generally speaking no. If the loan was made prior to her filing BK and it was unsecured, then it is treated as any other unsecured debt in the BK. You cannot sue her now.
Answered on Aug 13th, 2012 at 2:02 PM
Dennis P. Mikko
No, the automatic stay provided in the bankruptcy law would prevent you from suing her. Hopefully she has listed you as a creditor in the bankruptcy and you will receive some money through the Chapter 13 plan.
Answered on Aug 13th, 2012 at 2:01 PM
Business Law Attorney serving Bingham Farms, MI
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James T. Weiner, P.C.
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No. There is an automatic stay against filing any lawsuits or pursuing any other collection actions but you should make a claim against the bankruptcy estate. You should be getting documentation in the mail on how.
Answered on Aug 13th, 2012 at 2:01 PM
Litigation Attorney serving Westland, MI
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Clos, Russell & Wirth, P.C.
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If you are listed as a creditor in her bankruptcy matter (you would have received a notice of stay and creditor's meeting if you were), then the order of stay precludes you from taking any action to collect or enforce that debt, including filing a lawsuit. Should you violate the order to stay, you could face very punitive sanctions from the bankruptcy court.
Answered on Aug 13th, 2012 at 2:00 PM
Construction Attorney serving Bloomfield Hills, MI
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Law Offices of Jeffrey Z. Dworin
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Make sure you file a claim if you are not listed on the schedules. Under Ch 13 at least a percentage has to be repaid. You cannot, however, sue someone who filed bankruptcy unless you can prove fraud, which is unlikely with a simple loan.
Answered on Aug 13th, 2012 at 2:00 PM
Real Estate Attorney serving Williamstown, NJ
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Law Offices of Slotnick & Schwartz
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No. She should have included you in the bankruptcy. She either arranged for a payment plan to pay you back or discharged the debt which means she no longer owes you the money. You can only sue her if she defaults and the bankruptcy is dismissed.
Answered on Aug 13th, 2012 at 1:59 PM
Bankruptcy Law Attorney serving Livingston, NJ
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Law Office of Stuart M. Nachbar, P.C.
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If she has filed for Bankruptcy, you may NOT institute suit as you would be in violation of the automatic stay and subject to damages. You would file a Proof of Claim in her Bankruptcy. There are ways to sue in the Bankruptcy Court, but you would have to prove fraud.
Answered on Aug 06th, 2012 at 3:00 PM