Legal Question in Bankruptcy in California

Re: Claim Preclusion

There are unfortunately a lot more facts necessary to really answer this question. First, what chapter of bankruptcy did the Debtor file? Second, what stage of the bankruptcy proceding is the debtor in? Third, when was the debt incurred to this creditor - before or after the bankruptcy filing? Fourth, when you indicate Fraud in the Inducement - are you saying that the debtor failed to disclose to you that he was in bankruptcy when he incurred the debt? I hate to say it, but I just can't discern enough from your post to give you an answer. My simple answer is that if the debtor is in bankruptcy right now, I would obtain relief from the automatic stay (assuming grounds even exist to do so) in bankruptcy court before proceeding to do ANYTHING in state court. Second simple answer - if you believe that the debtor has committed bankruptcy fraud, call the U.S. Trustee's office for the district in which the case is filed, and give them the specifics of why you believe that the debtor has committed fraud. Be very careful in doing so, however, because if there is no basis for making that claim, it will not be looked upon very kindly by the UST. Omitting a creditor might be basis for the UST to seek to prevent the debtor from obtaining a discharge.

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