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Bankruptcy Law/Small Claims Judgment

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Expert: - 3/8/2010


Question
I won  a small claims judgment against the defendant, and after a month of receiving no payment I filed for a judgment debtor hearing.  I then received notice in the mail that the defendant filed for bankruptcy under Chapter 13.  From what I've read online, my only option at this point is to cancel the judgment debtor hearing and file a proof of claim as a creditor in his bankruptcy case.  
Questions:
Is there any other options available in order to collect my judgment?
Can I still add the annual 10% interest to the judgment allowed by small claims court?
Thank you in advance for any answers you can give.

Answer
You are correct.  You cannot take any actions to further collect on the debt.  You should file a proof of claim in the Chapter 13 case and you will be paid pro rata whatever percentage the unsecured creditor class receives.  You can keep adding interest, but if he receives a discharge in the bankruptcy case, there will be no further obligation to pay.

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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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