Creditor Options in a Chapter 7 Proceeding
My question involves bankruptcy in the state of: Pennsylvania. I have a judgement against an individual from whom I just received a Notice of Chapter 7 Bankruptcy Case, Meeting of Creditors & Deadlines. My question is whether this is the death knell to any hope of collection or is there something I should be sure to do to insure that, if there's anything left from the liquidation, I get my fair share.
Also, the court had previously scheduled a hearing to determine if the defendant should be held in contempt, and a warrant issued for his arrest, for not responding to the various interrogatories we've filed throughout the course of my case. This defendant, evidently, has not notified the court of his intent to file bk or of the actual filing, so the court date is still scheduled. Is there any reason for me to show up at this hearing? Could he still be held in contempt or is that action stayed by the bk, too?
Re: Creditor Options in a Chapter 7 Proceeding
The state court action cannot proceed on any level and, if the debtor did not file a notice of bk filing with the court you should notify the court that you received a notice that the defendant has filed. In my district there is an affirmative duty for the creditor to take steps to stop all collections, including any pending court actions.
The bk notice you received probably states that it is a "no asset" case and indicates that you should not file a claim at this time. While you are free to file a Proof of Claim despite the notice, if and when any assets become available the Trustee will send you a notice to file a claim.
For the most part this is the end of the road unless there was some fraud involved. If your judgment deals simply with a breach of contract matter you should move on.
Des.