Bankruptcy Question

480sparky

No, not me..... they guy who owes me. Never had this happen before, so I thought I'd ask here.



Finally got a hold of a guy who's owed me money for about 2 years now. He says he filed bankruptcy last year and I should have been paid. I told him I never got paid, let alone notified he's filed. He says everything was settled early December.

IF he filed bankruptcy and never submitted his debt to me to the court, is he still on the hook for everything that he owes me? Or am I just SOL for all of it?

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Site : the area or exact plot of ground on which anything is, has been, or is to be located.
Sight : The power or faculty of seeing; perception of objects by use of the eyes; vision.
Cite : To mention in support, proof, or confirmation; refer to as an example.

griz

Hey 480, Absent a lien from you and the bankruptcy settled I believe you are SOL. The bankruptcy has the ability to wipe the slate clean of the POS who owed you money. This is exactly why Guido & Sal would be so busy arranging payment plans. Sometimes it's just easier to move on & chalk it up to tuition to the school of hards knocks. If I add up all my "units" I probably have a double PHD by now.

480sparky

But, my understanding of bankruptcy is that you go into court to have the debt erased or reduced. If he didn't include what he owes me, then the court did not 'settle' it. Any he did include in his filing were 'settled'. Therefore, I think he still owes me in full.

__________________
Site : the area or exact plot of ground on which anything is, has been, or is to be located.
Sight : The power or faculty of seeing; perception of objects by use of the eyes; vision.
Cite : To mention in support, proof, or confirmation; refer to as an example.

Metro M & L

I thought the plaintiff in a bankruptcy had to include all debts or they were still legitimate. Also, why would he say he thought you got paid? sounds weird.

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"Yeah... It's worthy of a sig quote."

Metro M & L

WHAT DEBTS ARE ERASED BY A BANKRUPTCY?



Most unsecured debt is erased in a bankruptcy
except for:

Child support and alimony;
Debts for personal injury or death caused by your
drunk driving;
Student Loans.
Income tax debt.
Note on Private Student Loans: On June 7 2007, US Senator Dick Durbin introduced a Bill to make private student loans dischargeable in bankruptcy, as they were before 2005. The 2005 changes to the U.S. Bankruptcy Code made the treatment of private student loans equivalent to the treatment of government-guaranteed student loans, which were not dischargeable. This bill would reverse the 2005 amendment, so that private student loans again would be fully dischargeable in bankruptcy.

More Detailed information about debt that might survive bankruptcy

The following debts are not erased in both Chapter 7 and Chapter 13. If you file for Chapter 7, these will remain when your case is over. If you file for Chapter 13, these debts will have to be paid in full during your plan. If they are not, the balance will remain at the end of your case:

Debts you forget to list in your bankruptcy papers, unless the creditor learns of your bankruptcy case;
Child support and alimony; Debts for personal injury or death caused by your intoxicated driving; Student loans from government organizations, unless it would be an undue hardship for you to repay; Fines and penalties imposed for violating the law, such as traffic tickets and criminal restitution, and
Recent income tax debts and all other tax debts.
This is a complicated area of the bankruptcy law and an attorney should be consulted. You can discharge (wipe out) debts for federal income taxes in Chapter 7 bankruptcy only if all of these five conditions are met:
The IRS has not recorded a tax lien against your property. (If all other conditions are met, the taxes may be discharged, but even after your bankruptcy, the lien remains against all property you own, effectively giving the IRS a way to collect.) You didn't file a fraudulent return or try to evade paying taxes. The liability is for a tax return (not a Substitute or Return) actually filed at least two years before you file for bankruptcy. The tax return was due at least three years ago.
The taxes were assessed (you received a notice of assessment of federal taxes from the IRS) at least 240 days (eight months) before you file for bankruptcy. (11 U.S.C. §§ 523(a)(1) and (7).)

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"Yeah... It's worthy of a sig quote."

griz

480, Your logic is sound. I'm just not sure how you would enter an obligation after all is settled. The Court will ask why you did not file a lien notice.

480sparky

Apparently, he had a long list of debtors. Maybe he just forgot to include mine. Maybe it got lost in the court shuffle, what with the courts being so overwhelmed and underpaid these days.

I'm thinking that if he didn't include what he owes me when he filed, then the court cannot address it and therefore nothing has changed,,,,,, he still owes me 100%.

I'm gonna do some digging next week if I can't get any info from him. It may take some phone calls to the courts to see what's up. Maybe some day when I'm flapping gums with my lawyer I'll ask, but I hate to pay him just to ask one question.

__________________
Site : the area or exact plot of ground on which anything is, has been, or is to be located.
Sight : The power or faculty of seeing; perception of objects by use of the eyes; vision.
Cite : To mention in support, proof, or confirmation; refer to as an example.

griz

Try writing the court where the bankruptcy was filed.

afkama

If he did not list you, then the debt is still valid. (with the added benefit that he can't file on it again for seven years.)
If he had listed it you would have been notified by the court.

skyhook

wheeler

sol is the short-story.

PrestigeR&D

Correct,

If it is not included in the filling than he is agreeing, by default, that he owes money to that entity and is left out in the filling;ie- People that file for chapter 7 can have all their "creditors" wiped out and still maintain the house and continuing to make their payments- same with an Auto loan if they have one-that being secured-your situation is probably classified as unsecured- they are all credit entities and would have to be listed in the bankruptcy filling to be "cleaned". I am not a Lawyer obviosly just have had some aquantances that have gone through this.

skyhook

Federal Bankruptcy was never meant to be a way to escape obligations.

D. Jones Const

I would say that you are sol, he has the right even after court to add depts that he forgot. I think you could just write it off as a company loss though.

BamBamm5144

Just go and take all your wires back!

480sparky

Then I would be the one facing criminal charges.

__________________
Site : the area or exact plot of ground on which anything is, has been, or is to be located.
Sight : The power or faculty of seeing; perception of objects by use of the eyes; vision.
Cite : To mention in support, proof, or confirmation; refer to as an example.

BamBamm5144

Yes I know but it would send a good message to him.

BKFranks

If he did not list the debt in the bankruptcy, then this particular debt was NOT forgiven and the money is still owed to you. This is why there is such importance in making sure the many pages of paperwork is filed out completely and correctly.

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Framer53

The persons time period for adding debts is gone when the BK is final.

He owes the man the money! He just needs to go after the debt!

Framer53

Yes you would. As myself and others have told you, the debt has not been forgiven if he didn't list you as a creditor. Go get him!!!!