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socrateaser, Attorney
Category: Bankruptcy Law
Satisfied Customers: 37818
Experience:  Attorney and Real Estate Broker -- Retired (mostly)
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someone loaned me $5700 in september 2007. i filed bankruptcy

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someone loaned me $5700 in september 2007. i filed bankruptcy in november 2007. the debtor is claiming he was not notified of the bk and has filed a small claims case against me.   is the judge able to overrule the bankruptcy whether the debtor was notifed or not and/or even included in the bk? i understand the law to be all unsecured debt owed on the date of the bk filing is released once the bk is discharged.
Submitted: 7 years ago.
Category: Bankruptcy Law
Expert:  socrateaser replied 7 years ago.

Generally, the failure to notify an ordinary unsecured creditor of a bankruptcy does not protect the creditor, and the debt will still be discharged. The exception would be if the debtor intentionally failed to notify the creditor, who would have had protectable rights were notice to have been timely.


For example, if the creditor claims that he/she was defrauded by you into making the loan, then that is grounds for the bankruptcy court to deny discharge of the creditor's debt.


But, if there's no claim of fraud and the creditor merely wants to collect on the default, then the failure to notify of the debtor's bankruptcy will not protect the creditor's claim from discharge.


As far as the small claims action goes, the judge will have to dismiss the case as soon as the court is notified of the bankruptcy claim, and the creditor will have to take his/he complaint directly to the bankruptcy court.


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