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LawTalk, Attorney
Category: Bankruptcy Law
Satisfied Customers: 37854
Experience:  I have more than 25 years of experience in the practice of law.
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I am a third party collector. A Debtor which i have an asigned

Customer Question

I am a third party collector. A Debtor which i have an asigned Judgment in Indiana has filed a Chapter 13. I never recievd notice untill recently. A clim was not filed due to lack of notice.

Am I obligated to stop any proceedings since i never recieved notice or allowed to protest or file a claim. I have filed a Pro sup to Garnishee DF. The Garnishee has stopped order due to the filling. I would presume they must reopen BNK case and add my client. The local court has recieved money on this case- i have not as of this date. If i do am i obligated to return the money. Should i just wait till i get notice.

Myron Green
Submitted: 6 years ago.
Category: Bankruptcy Law
Expert:  LawTalk replied 6 years ago.
Good morning,

I'm sorry to hear of your dilemma.

You, or your client, can apply to the bankruptcy court to file a late claim if you want. However, under the law, given that you have notice of the bankruptcy, you must cease all collection activity or you can be found in contempt of court.

You may not accept any payment received based on collection efforts after the bankruptcy was filed. You will need to turn the money over to the bankruptcy Trustee now that you have been made aware of the filing. You may not continue to hold it until you are added as a creditor---presuming that your principal was not named in the first place. The fact that you are receiving notice late in the game does not mean that your debt was not already listed---and if it was not, it can easily be added.

I wish you the best in 2011.

Because I help people here, like you, for a living---this is not a hobby for me, and I sincerely appreciate your abiding by the honor system as regards Accepting answers. I wish you and your family the best in your respective futures.

Would you be so kind as to Accept my Answer so that I may be compensated for assisting you? Bonuses for greatly informative and helpful answers are very much appreciated. Thanks Again,


Customer: replied 6 years ago.
I had a follow up question did you recieve?
Expert:  LawTalk replied 6 years ago.
No, I did not see it. I needs to be posted to this thread. When it is posted you and I will both see it here.