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Bankruptcy Law/Recieved Chapter 7 Bankruptcy Notice

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Question
Hello. I filed a suggestion of summons and summons to garnish wages of someone who owes rent, damages to apartment, etc (this was in Virginia). I just recently received a notice : Notice of Chapter 7 Bankruptcy Case, Meeting of Creditors & Deadlines. Also the have an order staying levy or garnishment.
I am assuming this means that I will no longer receive funds as they are no longer allowed to be collected? Is there anything further I need to do? Is there anything else I can do to try and collect??

Answer
The garnishment was terminated because the underlying debt will be discharged in the Chapter 7.  You will be instructed by the clerk of court to file a proof of claim if there will be a distribution in the case, but that happens in very few cases.

In the meantime, and going forward, you must comply with the Notice of Chapter 7 Bankruptcy Case, which states in relevant part:

DISCHARGE OF DEBTS.  The debtor is seeking a discharge of most debts, which may include your debt. A discharge means that you may never try to collect the debt from the debtor. If you believe that the debtor is not entitled to receive a discharge under Bankruptcy Code 727(a) or that a debt owed to you is not dischargeable under Bankruptcy Code 523(a)(2), (4), or (6), you must file a complaint −− or a motion if you assert the discharge should be denied under 727(a)(8) or (a)(9) −− in the bankruptcy clerk's office by the "Deadline to Object to Debtor's Discharge or to Challenge the Dischargeability of Certain Debts" listed on the front of this form. The bankruptcy clerk's office must receive the complaint or motion and any required filing fee by that deadline.


Regards,

Brian V. Lee, Esq.
Bankruptcy lawyer in DC, VA & MD
http://www.lee-legal.com

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Brian V. Lee, Esq.

Expertise

Please note that I do not answer Private questions. All questions related to consumer and business bankruptcy, debt management, and personal finances are welcome. Serving clients in the DC-metropolitan area since 2005, I am licensed in Virginia and the District of Columbia. I have provided counsel to hundreds of clients with a wide variety of complex legal and financial issues. Feel free to visit the Lee Legal website for more information.

Experience

Serving clients in the DC-metropolitan area since 2005, I am licensed in Virginia and the District of Columbia. I have provided counsel to hundreds of clients with a wide variety of complex legal and financial issues. * Bankruptcy Chapter 7 * Bankruptcy Chapter 13 * Bankruptcy Chapter 11 * Bankruptcy Terms * Foreclosures * Mortgage Issues * How to Save Your Home * How to Rebuild Your Credit * Property You Can Keep * Car Repossession * Debt Test * Tips for Consumers in Debt * What to Expect in Court * Washington, D.C., Exemptions * Virginia Exemptions * Checklist of Key Changes in Bankruptcy Law * Changes in Chapter 7 & 13 Bankruptcy Law * Big Changes in Bankruptcy Law

Organizations
DC Bar, VA Bar

Publications
http://www.lee-legal.com/bankruptcy-blog

Education/Credentials
I am a graduate of Rutgers University and the George Mason University School of Law.

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