Legal Question in Credit and Debt Law in California
I am being sued in Small Claims Court for approximately $5,600 for a loan a family member made to me. My husband and I are under Chapter 13 and our BK has not been dicharged. Can I be sued?
3 Answers from Attorneys
No... you need to send a letter to the Small Claims Court with proof of your bankruptcy filing and a copy to the person suing you. Tell the person suing you that you will seek court sanctions and attorneys' fees against them if they proceed with the lawsuit. Make sure that person knows you filed a bankruptcy case so that he or she has an opportunity to file a claim in the bankruptcy case. Therefore, using certified mail to let him or her know of your bankruptcy case would not be a bad idea because he or she might later claim not knowing it and also claim that their claim was not discharged because you never informed him or her of your case.
Mr. Carballo's answer is very good advice.
If you did not list this debt in your bankruptcy filing, you may have a problem here. I agree that you must notify the court and the other party of the bankruptcy, but the other party should have gotten a notice if they were scheduled as creditors. If you have a bankruptcy attorney, you need to go to them about this. If not, you need to at least consult directly with one. Your Ch. 13 may have problems.