Legal Question in Bankruptcy in California
Contractor filing Chap 7, won Small Claims case for his working without a license which is against the law in CA.
Is he allowed to have my judgment dismissed even though I won due to his committing fraud, and breaking 3 laws in the process? Also, after I won based on the merits of the case, he tossed hundreds of nails in my driveway and threw a gallon of white paint on my fence and gate. Then the guy had the nerve to file an appeal. At the appeal, the judge increased the judgment because of his (nail and paint) actions plus the fact that he found that he performed the work without a license, (actually he did it under the license of a person who had already died, which I didn't know during the first case, it only came up in preparation for the appeal).
I received a notice yesterday that he has filed for Chapter 7 bankruptcy. I understand that in bankruptcy you can have money you owe dismissed or discharged, but when you break the law in the way he did, is that also allowed to be discharged as well? That seems to be unfair that someone could willingly violate the law and then just have the judgment discharged.
Any help would be appreciated.
Thanks
2 Answers from Attorneys
Nice guy! You would file an adversary action in BK court to determine the dischargeability of the debt. Debts not dischargeable include willful injury to another entity (including a person). If there was a court reporter in the small claims appeal, you might want to get a copy of the hearing record. If not, one would hope the judgment reflects why the judge ruled the way the judge did.
If you received a copy of the notice from the bankruptcy court, you will notice a section entitled Deadlines. You will notice some language that looks something like this: Deadline to File a Complaint Objecting to Discharge of the Debtor or to Determine Dischargeability of Certain Debts:" The date listed is very important for you to note. It is the deadline that you have to file and lawsuit in bankruptcy court called an adversary proceeding.
Certain debts such an amount for for damages as a result of willful injury to property can be declared nondischargeable. However, failing to file the appropriate legal action in the bankruptcy court could result in a discharge of the debt. if you do not act promptly, your judgment will be null and void.
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