Legal Question in Bankruptcy in California

Re: Collection of a debt through bankruptcy

It would be important to know the type of bankruptcy the attorney filed and the exact current status, because that would determine the legal standing he has to pursue the claim or to hire someone to collect it for him.

The judgment/claim against you is an asset of the banruptcy estate. If the asset was properly listed and this was a chapter 7 case, then the Chapter 7 trustee would be the person to have standing unless he/she abandoned the asset back to the attorney/debtor.

If you call me next week with debtor's name and case number, I can look up the records online and provide some further guidance on how to proceed.

Re: Collection of a debt through bankruptcy

When the attorney filed for bankruptcy, all of his debts and all of his assets became the "bankruptcy estate," which is then administered by the trustee. I will assume that the attorney filed a Chapter 7 because you stated that the estate has already been administered and because had the divorce attorney filed a Chapter 13, the money that you owed to him would be factored into the bankruptcy analysis for the Chapter 13 plan purposes. [Chapter 13 estates are not liquidated by the trustee and the trustee does not pursue assets.]

In a Chapter 7 bankruptcy, all non-exempt assets are then liquidated by the trustee and the proceeds are used to pay the creditors of the bankruptcy estate.

In your case, whatever amount you owed to the divorce attorney became an asset in the bankruptcy estate. The trustee retained his/her own attorney to collect against you. A lawsuit was filed against you and a judge made the decision that you owed money to the bankruptcy estate. The trustee can employ agents to act on his/her behalf, and in your case, the trustee employed the collection agency. Whether or not the collection agency will continue to pursue you depends on your own financial situation.

However, keep in mind that the trustee most likely has investigated you to determine if it was worthwhile before he/she filed to collect the money you owed your divorce attorney.

Re: Collection of a debt through bankruptcy

You have quite a few questions that are best answered over the phone. However, in a nutshell, an original or third party creditor must validate the alleged debt in which they are attempting to collect, upon the written request of the debtor at issue under FDCPA laws. If you would like a free phone consultation, contact us directly.