Expert: Mark J. Markus- California Bankruptcy Attorney - 11/11/2006

Question
I have an attorney handling my no-asset Chapter 7, but I am curious as to why a non-listed creditor (who can be easily listed before the deadline to file claims, which is not until mid-december) would file a lawsuit AFTER being informed of the bankruptcy filing, and after having been informed that the first meeting of creditors took place with no creditors appearing. This creditor seeks a small amount compared to some of the no-shows (like the others, non-secured credit card debt). Is there some benefit to the creditor to continue with a lawsuit even though there has alrady been a finding of no assets? We are in Illinois.
Should the creditor have even filed the lawsuit, given that they had notice (a fax with delivery confirmation) of the bankruptcy filing, or would a stay only apply to someone with official notice? Is there something I shold beware, or is this just a way to tie up loose ends?
Thanks,
PD (Illinois)
PS I would ask my lawyer but it's Friday and I don't want to be thinking about this all week-end. Thank you for any info. Just the curiousity is bugging me!

Answer
Your facts are a bit incomplete.  In what court was this lawsuit filed?  Bankruptcy or State court?  There are no deadlines to file claims in a no-asset Chapter 7 case.  Do you mean the deadline to object to the discharge of debt?  If the lawsuit you speak of was commenced in a forum other than bankruptcy, then they are in violation of the automatic stay and you can obtain sanctions against them.