Someone asked about Us Bankruptcy Court Record

Edwards Finance > Loans

Q. Someone asked me same questions about Us Bankruptcy Court Record , to my embarrasment, I don't really know the answer: If a creditor files a suit on a debt and the debtor then files a Ch 7 petition, can creditor continue the suit when the stay is lifted ? I (think I) know that the debt will be discharged but, even though seemingly pointless, can the creditor get a judgment anyway ... the concern here of course was that there will always be a judgment on the credit record ... If the suit on the debt cannot continue, how, procedurally, is it terminated ?

A. No. A creditor has to make a timely objection in the bankruptcy court. And I mean timely. It may be that, if the creditor makes a motion in the bankruptcy court for a lifting of the automatic stay , the bankruptcy court may grant it so that the litigation can be continued in the state court, especially the family court. But, if it looks like the debt is not going to be one that falls under the exceptions to discharge, that motion for lifting of the stay stands little chance to be granted. > I (think I) know that the debt will be discharged Are you sure? That's why a bankruptcy lawyer has to examine the issue. >but, even though seemingly > pointless, can the creditor get a judgment anyway ... the concern here of > course was that there will always be a judgment on the credit record ... There will be a bankruptcy on the credit record for some time. But there will be not necessarily be a judgment listed there. Not unless one is obtained. > If the suit on the debt cannot continue, how, procedurally, is it terminated > ? In the state court? It is formally withdrawn when the creditor learns of the Chapter 7 filing or as soon as the bankruptcy judge rules that the litigation cannot continue in the state court. If the suit is not withdrawn immediately after that, the creditor takes the risk of being in contempt of the debtor's automatic stay or his discharge injunction--and being haled into the bankruptcy court on this account. And it will cost the creditor. Trust me.

Ask Edwards a Finance Question

Other Questions:

Debt Consolidation HOME LOANS

...

Personal income tax rates for various brackets in BC? Where can I find a table of current rates for all brackets, online?- this link :http://www.ey.com/GLOBAL/gcr.nsf/Canada/Tax_Welcome_Calculators_taxcalc -http://www.deloitte.ca/en/pubs/tax/Qui...

I have two collection accounts on my credit report and they are wrecking my credit. Both are under $150 and both have been paid. However, I understand i went about paying them the incorrect way. I got no guarantee that they would remove the ...

How bankruptcy law benefits children ? While bipartisan bankruptcy reform legislation was being considered by Congress for nearly eight years, women and children patiently awaited long-overdue critical reforms to prevent deadbeat parents from ...

Parent company of National Rent A Car flies for bankruptcy .Did anyone hear about this?-Yes. Actually it's the corporate parent of both National AND Alamo, which is more of a concern to me--Alamo's tied in with Rapid Rewards, National isn't. ...

Edwards Finance Menu

Ask a Question
About Us / Me
Contact Me
Privacy Policy

Sitemap

My Favorite Sites

PFBlog
Google Finance
Yahoo Finance
Motley Fool
Nveille's Financial Blog
AllFinanceMatters
Free Money Finance
2MillionBlog
The Terror Finance blog

Q&A Subjects