Legal Question in Bankruptcy in California
is my small claims judgment still valid
I have a small claims judgment from 1989 for $500.00. in 1994 the judgment debtor filed chapter 7 bankruptcy. I looked at his court file and I am not listed on the creditor's list. The collection agency I called told me that in a bankruptcy all debts are discharged whether listed on the creditor's list or not. Is this true? I was never notified of the bankruptcy. If my debt is still good, why would the collection agency tell me it wasn't?
2 Answers from Attorneys
Re: is my small claims judgment still valid
The debt is discharged but if you were not listed and did not know about the bankruptcy you can file a motion in the bankruptcy court to request the court allow you to collect the debt and it will likely be granted.
Ken Koury
Kenneth P. Koury, Esq.
5807 Topanga Cyn Blvd., Suite G-201
Re: is my small claims judgment still valid
In the 9th Circuit (including California), if the bankruptcy case is a "no-asset" case (meaning no assets were distributed to creditors, then there is no effect to not listing a creditor. In other words, your debt was discharged in the bankruptcy. The only thing you could do is, if you had grounds to prosecute the debtor for fraud or similar grounds relating to your debt, or perjury on his schedules, you could file a motion with the court for additional time to file such a nondischargeability complaint. Of course, in your case, your judgment would probably have to already have a fraud count included in the findings of the state court.
Mark Markus
Law Office of Mark J. Markus
11684 Ventura Blvd., Ste. 403
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