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Question
I was trying to take my former tenants to small claims for breaking a lease.  They filed bankruptcy in 11/2007.  I did not know them or rent to them until fall of 2008.  Now I received a discharge of debtor from the bankruptcy court saying it is unlawful for me to continue trying to collect.  I thought this would be new debt.  Also I never received anything from them regarding the bankruptcy until the discharge of debtor came this week. I only knew they filed Ch 7 because when I went to small claims court they said it had an automatic stay on it and that it was unusual since the claim was filed in 2007, and that I should request a relief from the stay from the bankruptcy court. Am I still legal in trying to collect since this was after their bankruptcy was filed?  Are they just trying to blow me off with the letter for discharge of debtor?

Answer
If the rental agreement was entered into after they filed their bankruptcy case, then you are completely within your rights to seek collection from them without violating the automatic stay or any other bankruptcy provisions.  The debt they owe to you was not covered by their Chapter 7 case.

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Mark J. Markus- California Bankruptcy Attorney

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Mark J. Markus is a Los Angeles bankruptcy attorney who has practiced exclusively bankruptcy law in California since 1991 and is rated A+ by the Better Business Bureau and is AV-rated by Martindale-Hubbell. He represents debtors, creditors, and Trustees in Chapter 7, Chapter 11, and Chapter 13 of the bankruptcy code throughout California.

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Visit our California bankruptcy webpage at http://www.bklaw.com for more information on bankruptcy in general and Mark J. Markus in particular. Many questions are answered on the web page (hint, hint).
The Markus webpage also contains more information on

  • Which Chapter to File,
  • business bankruptcy,
  • chapter 7 bankruptcy,
  • chapter 11 bankruptcy,
  • chapter 13 bankruptcy,
  • Do You Need a Lawyer to File Bankruptcy?
  • Frequently Asked Bankruptcy Questions

    Also visit our Los Angeles bankruptcy blog for interesting articles and much more.



    Organizations
    Central District Consumer Bankruptcy Attorneys Association (CDCBAA) Los Angeles County Bar Association (LACBA) Commercial Law & Bankruptcy Section of the Los Angeles County Bar Association Financial Lawyers Conference (FLC) National Association of Consumer Bankruptcy Attorneys (NACBA) Los Angeles Bankruptcy Forum (LABF) American Bankruptcy Institute (ABI) San Fernando Valley Bar Association (SFVBA)

    Publications
    Central District Consumer Bankruptcy Attorneys Association Newsletter September 2007 (Vol. 1, Issue 2)

    Education/Credentials
    J.D., University of Arizona 1990. B.A. Economics, California State University, Northridge 1986. For more details please click here

    Awards and Honors
    AV Rated by Martindale-Hubbell (http://www.martindale.com) A+ Rated by Better Business Bureau

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