Legal Question in Civil Litigation in Florida
Person defrauded me out of a $1,000 by selling me something on ebay which I paid for by checking and then running. The person defrauded other ebay members as well but they issued a dispute with their credit card. Now, she is trying to hide behind bankruptcy. Can I use a small claims court to get a judgment based on fraud to survive the bankruptcy? Can this type of case proceed during her bankruptcy proceed since a fraud is not projected by bankruptcy? Can a special fraud lawsuit be filed in small claims court?
1 Answer from Attorneys
A pending bankruptcy automatically stays other civil lawsuits as to the bankrupt party. The only way you can proceed in state court while the bankruptcy is pending is by asking the bankruptcy court to give you relief from the automatic stay. Such relief is usually available only to secured creditors.
You're right that debts incurred by fraud are not dischargeable, but you bear the burden of proving to the bankruptcy court that yours is such a debt. That means you will have to participate in the bankruptcy case. This may not be cost-effective for a $1,000 debt, especially if the bankruptcy court is far away from you.
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