QUESTION
Can the creditor file a lawsuit against me after bankruptcy?
Asked on Jan 18th, 2014 on Bankruptcy - Colorado
More details to this question:
I filed for bankruptcy last month and had my 341 meeting. Everything went well and was told my discharge would be in a few months. I noticed today on the court website that one of my creditors, that was listed in the bankruptcy, has filed a lawsuit against me, however they have not paid the filing fee as of yet. How can they do this? Isn't this illegal? I paid almost $2000 in attorney fees to avoid this very thing. Thanks.
14 ANSWERS
Bankruptcy Law Attorney serving Austin, TX
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Law Office of Susan G. Taylor
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Don't see how they could file without paying the filing fee. Anyway, just call & give them your case number, day of filing, & attorney contact information.
Answered on Jan 24th, 2014 at 7:49 AM
Your attorney can normally handle this with a phone call to the creditor. It may have simply been an oversight on the part of the creditor. If the creditor persists after receiving notice of the BK filing, they can be held in contempt of court before the Bankruptcy Court Judge. Normally the Court will award you attorney fees and costs for this action. Again, most creditors will normally apologize and withdraw the state court case.
Answered on Jan 23rd, 2014 at 5:06 PM
Bankruptcy Attorney serving Walnut Creek, CA
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Alan E. Ramos Law Offices
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If the lawsuit was filed in State Court, it is a violation of the automatic stay. However, if the lawsuit was filed against you in Bankruptcy Court, it may be appropriate and must be responded to. This answer was provided as a public service to a question posed on the Law Q & A website. The answer is based on the information provided and is limited to those facts. Furthermore, the answer is based on California law and their application to bankruptcy law in California. Additional information could change the context of the question and materially change the answer.
Answered on Jan 22nd, 2014 at 12:09 AM
Michael J. Breczinski
Report this to your bankruptcy attorney.? The lawsuit is a violation of Federal bankruptcy law.
Answered on Jan 22nd, 2014 at 12:09 AM
bankruptcy Attorney serving Paul, ID
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Paul N. J. Ross Law, PLLC
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Visit with your bankruptcy attorney. This would be in violation of the automatic stay. Your attorney can stop it.
Answered on Jan 22nd, 2014 at 12:01 AM
Debt Settlement Attorney serving San Diego, CA
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Law Offices of Kathryn Tokarska
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Are you talking about a creditor filing an adversary complaint in the bankruptcy court or filing a complaint against you in the state court? If it's an adversary complaint, a creditor can file an adversary to seek non-discharge ability of a particular debt based on some theory (for example: breach of fiduciary duty, misrepresentation, fraud, etc) unless the debt was incurred in the last 90 days prior to the filing of the bankruptcy case the burden will be on them to prove up their claim. If you are talking about filing a lawsuit in the state court in an attempt to collect on potentially dis chargeable debt, then contact your attorney immediately and let them know that this has happened. He/she can take steps to make sure that the suit is dismissed and if warranted seek sanctions and damages against the offender.
Answered on Jan 22nd, 2014 at 12:00 AM
Mistakes do happen & creditors sometimes overlook the information about the bankruptcy which the court sends out in the mail. If a letter from your attorney doesn't stop the lawsuit, not to worry. You can make some nice money suing this creditor for a violation of the bankruptcy stay if the creditor chooses to proceed. That should take the sting out of your discomfort.
Answered on Jan 21st, 2014 at 11:59 PM
Consult with your attorney and have him contact the creditor. Sometimes one hand doesn't know what the other is doing and the case was filed without knowledge of your BK. Also, even if the creditor had no actual notice through the BK there is case law that states a good faith omission of a creditor can still result in the discharge of the debt.
Answered on Jan 21st, 2014 at 11:57 PM
Bankruptcy Attorney serving Omaha, NE
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Heineman Law Office
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Strange to file a lawsuit but not pay the filing fee. The bankruptcy code prohibits creditors from proceeding with a lawsuit.
Answered on Jan 21st, 2014 at 11:56 PM
Complex Litigation Attorney serving Costa Mesa, CA
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Thomas Vogele & Associates, APC
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A creditor may take no action to collect or otherwise enforce an obligation that arose prepetition, before you filed. Violations of the automatic stay are taken quite seriously by the Court and you should have your lawyer contact the creditor immediately and demand a dismissal of the action. Failure to do so may be sanctioned by the Court.
Answered on Jan 21st, 2014 at 11:54 PM
Deborah F. Bowinski
Inform your lawyer if what you see. Your lawyer will take care if it.
Answered on Jan 21st, 2014 at 9:32 PM
Bankruptcy Law Attorney serving Livingston, NJ
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Law Office of Stuart M. Nachbar, P.C.
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The creditor would need to have filed a motion to vacate stay to go back to state court or file an adversary in the bankruptcy. Both of those actions are legal, but those are the only ways to file. Any others are in violation of the automatic stay.
Answered on Jan 21st, 2014 at 9:31 PM
James Edward Smith
Have your lawyer contact that creditor.
Answered on Jan 21st, 2014 at 9:28 PM
You need to make sure that they have notice of the bankruptcy and then they will stop.
Answered on Jan 21st, 2014 at 9:28 PM