Small Claims Award When Debtor Is Bankrupt

**525601minutes** · 03-06-2008, 08:47 AM

I have a judgment against a "friend" and his business for $2K plus almost $500 in court fees. But I just learned he filed for bankruptcy. Is my money just completely gone? The judgment is good for 10 years. Can I try to collect again before that time is expired?

**LawResearcherMissy** · 03-08-2008, 01:48 PM

If he listed it in his debts, it's gone forever:

If your judgment is listed as a debt in the debtor's bankruptcy proceeding, federal law prohibits you from trying to collect on the judgment. If you try to collect the judgment under those circumstances, you can be held in contempt by the federal bankruptcy court.

**525601minutes** · 03-09-2008, 09:38 AM

My judgement was not listed as a debt in his bankruptcy. I only found out that all of the assets from his business were sold off last month when I found a 'notice to creditors' on-line that was recorded with the county. Unfortunately I did not see it sooner or I could have been paid out of the proceeds.

**seniorjudge** · 03-09-2008, 09:42 AM

If the debtor lied to the bankruptcy court, then you MAY have some remedies.

Hire a lawyer versed in bankruptcy laws.

**525601minutes** · 03-09-2008, 11:10 AM

sweet! thanx!

**BOR** · 03-10-2008, 04:23 AM

Quoting 525601minutes

I have a judgment against a "friend" and his business for $2K plus almost $500 in court fees. But I just learned he filed for bankruptcy. Is my money just completely gone? The judgment is good for 10 years. Can I try to collect again before that time is expired?

He may ammend his petition if you obtained a recent judgment against him if you were not listed in his original schedule of creditors?

Inquire or keep an eye on his BK case at the federal courthouse where he filed, the papers are public record.

**BOR** · 03-10-2008, 04:27 AM

Quoting 525601minutes

My judgement was not listed as a debt in his bankruptcy. I only found out that all of the assets from his business were sold off last month when I found a 'notice to creditors' on-line that was recorded with the county. Unfortunately I did not see it sooner or I could have been paid out of the proceeds.

As long as some assests were not "hidden" to escape debt liability, generally called a "fraudulent conveyance" he has done nothing wrong. Since you were not listed, you could not get a piece of the action, so my above posts seems to be proper for you.

Good luck,

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