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  1. #1
    Join Date
    Sep 2006
    Location
    Utah
    Posts
    16

    Question Owed money from someone in Bankruptcy

    We owed a rental property in Utah. When our renters skipped out 2 months early they destroyed the property, they did about $6000.00 in damage. We took them to small claims to get the money owed. They filed bankruptcy in October and this took place in December.
    The judge dismissed our case and said they had 7 years not to have to pay, can someone explain why they didn't have to pay if it happened after the bankruptcy? It didn't make any sense to us.

  2. #2
    Join Date
    Sep 2005
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    98,846

    Default Re: Owed money from someone in Bankruptcy

    You may have violated the automatic stay in bankruptcy by filing after the bankruptcy was commenced but before the final order was issued.

  3. #3
    Join Date
    Sep 2006
    Location
    Utah
    Posts
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    Default Re: Owed money from someone in Bankruptcy

    As a follow up to this, I was wondering if anyone could help me. Our case was dismissed, but the people did go ahead and sign a mediation agreement saying they would make monthly payments for a portion of the damage. (It was signed by me, them, and a mediator.) At the bottom of the mediation agreement it says "the parties agree that this agreement is enforceable as a contract and may be used as evidence in a subsequent proceeding in which any of the parties allege a breach of the Agreement."
    They sent 2 payments and stopped. Do we have any legal ground here? If we take them back to small claims to get paid will it do any good or are we just out the money?

  4. #4
    Join Date
    Mar 2005
    Location
    Michigan
    Posts
    28,906

    Default Re: Owed money from someone in Bankruptcy

    The mediation agreement was signed when, relative to the bankruptcy?

  5. #5
    Join Date
    Sep 2006
    Location
    Utah
    Posts
    16

    Default Re: Owed money from someone in Bankruptcy

    They said the bankruptcy was finally finished in Jan or Feb. (it started in October) Our mediation was signed Aug. 10

  6. #6
    Join Date
    Sep 2005
    Location
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    Posts
    98,846

    Default Re: Owed money from someone in Bankruptcy

    I don't understand your situation or chronology. You had something happen with a tenant after they finished a bankruptcy, a judge dismissed your suit, you got some sort of mediation agreement somehow, and now... somebody won't let you enforce it? Or what?

  7. #7
    Join Date
    Jul 2006
    Location
    Ohio
    Posts
    1,126

    Default Re: Owed money from someone in Bankruptcy

    Why haven't you filed the claim with your business insurance policy, and let the insurance company decide whether or not to pursue the tenant?

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