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I had filed for personal bankruptcy chapter 7. I had an adversary

proceeding filed against my business...
I had filed for personal bankruptcy chapter 7. I had an adversary proceeding filed against my business. Having no money to defend the business a default judgement was leveled against the business. I just received a notice from the bankruptcy court that the adversary proceeding against the business is dismissed as abandoned by the Chapter 7 Trustee.

Does this mean the judgment against the business is gone?
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Answered in 5 minutes by:
11/12/2012
WALLSTREETESQ
WALLSTREETESQ, Attorney
Category: Bankruptcy Law
Satisfied Customers: 17,253
Experience: 14 years exp., CH 7 AND 13 Bankruptcy cases, AFL-CIO UNION PLUS, UFT NYSID AND ALL MAJOR UNIONS
Verified

WALLSTREETESQ :

Hello I am a licensed attorney here to help you with your question, please review my response and do not hesitate to ask for clarificati on

WALLSTREETESQ :

If you filed a personal bankruptcy only your personal debts would be discharged,

WALLSTREETESQ :

if the creditors are trying to claim that your business has assets that can be converted to assets to pay your personal creditors, that was denied by the trustee,

WALLSTREETESQ :

that does not mean the default against the business was dismissed.

Customer:

No creditors are claiming the busness has assets.If it was the trustee that filed the adversary proceeding does that change anything?

WALLSTREETESQ :

No, if the case was dismissed,

Customer:

my personal bankruptcy was discharged

WALLSTREETESQ :

and considered abandoned by the trustee, that means the trustee has failed to prove the business has assets, and that his claim is dismissed.

Customer:

What happens to the default judgement against the business?

WALLSTREETESQ :

that would remain only on the business,

WALLSTREETESQ :

the business can let it try to collect on them, or you can file a chapter 7 for the business only, but in most cases, if the business is not going to operate anymore, you can leave it their.

Customer:

How is it that the adversary proceeding against the business can be dismissed, but the judgment that can from that adversary proceeding does not?

WALLSTREETESQ :

If the judgment came from the bankruptcy Court, during your personal bankruptcy, and it was abandoned then it could be dismissed, if the judgment was the result of the trustees proceeding.

Customer:

The judgment was the result of the trustees proceeding and the trustee dismissed the proceeding

Customer:

The adversary court numbers are the same.

Customer:

The clerk shall close this adversary proceeding forthwith

Customer:

That means no one will try and collect?

WALLSTREETESQ :

yes, if the adversary proceeding was dismissed, and the default was the result of the proceeding, and was then abandoned, their would be no judgment or collection.

Customer:

Thank you, XXXXX XXXXX written the original question with a little more clarity. Sorry for the confusion.

WALLSTREETESQ :

Good luck, and make sure you go to the Court clerks office and have a copy of the entire bankruptcy case, and the dismissal, to make sure their is no issue.

WALLSTREETESQ
WALLSTREETESQ, Attorney
Category: Bankruptcy Law
Satisfied Customers: 17,253
Experience: 14 years exp., CH 7 AND 13 Bankruptcy cases, AFL-CIO UNION PLUS, UFT NYSID AND ALL MAJOR UNIONS
Verified
WALLSTREETESQ and 87 other Bankruptcy Law Specialists are ready to help you
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WALLSTREETESQ
WALLSTREETESQ
WALLSTREETESQ, Attorney
Category: Bankruptcy Law
Satisfied Customers: 17,253
17,253 Satisfied Customers
Experience: 14 years exp., CH 7 AND 13 Bankruptcy cases, AFL-CIO UNION PLUS, UFT NYSID AND ALL MAJOR UNIONS

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