You are here:

Bankruptcy Law/Small court judgment stayed pursuant to Notice of Bankruptcy

Advertisement


Question
I sued and won a $6700 judgment (for fraud) against someone in CA small claims court back in November of '06. The defendant filed a motion to vacate the judgment on the grounds that he claimed he wasn't served. I produced the registered process server at the January court hearing, so the judge determined that the defendant was indeed served. However, just as the judge was about to enter the verdict, the defendant asserted to the judge that he had filed Ch 13 bankruptcy (which I had no previous knowledge of). The judge then continued the matter pursuant to the notice of bankruptcy. A couple of days later, I received a "Debtor's Application for Voluntary Dismissal" letter in the mail from the defendant's attorney... so apparently the bankruptcy has been abandoned.

My question is this: Shouldn't the judge have just stayed the judgment at the point where he determined that the defendant was properly served and not continue the matter pursuant to the bankruptcy? Particularly since it was obvious that the defendant just used it as a stall tactic, which ultimately kept me from attempting to collect on the judgment prior to his filing bankruptcy. I understand that the bankruptcy could effect my ability to collect on the judgment, but do I have any recourse against the defendant for intentionally stalling the judgment from being entered? Thank you for your consideration.

Answer
Well, I suppose you could file a motion to reopen the bankruptcy case to have the judge determine that the defendant's actions were a stall tactic, in which case the remedy is to dismiss the bankruptcy case, which you state has already happened, so that would obviously be nonsensical.  As to your other questions, I need to know the dates of the hearings and dates of the bankruptcy case filing to give you any more of an answer.

Bankruptcy Law

All Answers


Answers by Expert:


Ask Experts

Volunteer


Mark J. Markus- California Bankruptcy Attorney

Expertise

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.

Experience

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

  • ©2012 About.com, a part of The New York Times Company. All rights reserved.