Legal Question in Bankruptcy in California
Bankruptcy question
Here's my story: My former landlords owed me a security deposit, but never gave it to me once I moved out. I took the case to small claims court and was awarded double the amount. I attempted to levy rent from the landlords' other tenants in order to get my money. I eventually received a letter from their lawyer stating they were proctected by Ch. 7 bankruptcy law. I followed the case online and eventually it was no longer active, so I again
attempted the levy. This time the tenant called and said their debt was wiped away, they no longer owe me the money and they will file sanctions against me if I
keep pursuing it. Is this true? I never filed anything with the bankruptcy court and was not listed as one of their creditors. Is there any way I can get my money? Should I drop my small claims case and attempted levy immediately before the sanctions come?
2 Answers from Attorneys
Re: Bankruptcy question
Yes. You likely are violating the permanent injunction. As you knew about the bankruptcy during its pendency, it would have been prudent at that time to bring an adversary action to properly pursue your claim. It seems that you are barred from trying to collect now.
Re: Bankruptcy question
If someone files bankruptcy and you become aware it it, you are still bound by the discharge and cannot collect the debt even though they falied to list you.
However your question is very confusing. I cannot tell if are you saying that the former landlord (the judgment debtor) filed for bankruptcy or if it was the tenant that filed. If the landlord filed for bankrtuptcy and the case was discharged, you are out fo luck. If it was the tenant and the tenant owes the landlord for post-bankruptcy rent, there is no reason that you should not be able to collection this rent from the tenant to help satisy the judgment.
Before you do anything, email me and I can review the case for your a little further.
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