Full question:
Can a plaintiff in a small claims court file a claim on a defendants property they paid half of and never got paid back for and had bankruptcy where that money was on a credit card and was written off? What is the plaintiff''s position; can they file for that money from the defendant who has the property in his possession? I have had all kinds of answers about the defendant (you can not file a small claim if you know the defendant has it in bankruptcy) but what about the plaintiff? are they just stuck with the bad credit?
- Category: Bankruptcy
- Date:
- State: Nebraska
Answer:
When a debtor files for bankruptcy, an automatic stay goes into effect. This means all collection efforts against the debtor are halted by law. If a creditor ignores this stay, they could face serious penalties. A creditor can request relief from the stay, allowing them to continue collection efforts if the court grants it. Additionally, a debtor may reaffirm the debt, agreeing to pay it instead of having it discharged in bankruptcy.
If a creditor attempts to collect on a discharged debt, it violates federal bankruptcy law and could lead to court sanctions. A debtor can inform the creditor in writing that they are violating the discharge order, and they may file an adversary proceeding against the creditor in bankruptcy court. The court can hold the creditor in contempt and impose fines.
This content is for informational purposes only and is not legal advice. Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.