Legal Question in Bankruptcy in New York

Re: stimulus check chapter 7

If your case is still pending, this is probably a violation of the "automatic stay" which prevents creditors from collecting pre-petition debts. If your case is closed, then the "discharge injunction" prohibits creditors from collecting pre-petition debts. Unless the VA debt is non-dischargeable for some reason (which is unlikely), it cannot collect on this debt. You should demand a return of the money from the VA.

Re: stimulus check chapter 7

That one creditor listed in a bankruptcy filing got paid and others did not is called "preferential payment," and the bankruptcy system does not look kindly upon it. That it's the government that paid itself may mitigate this somewhat.

If you don't have an attorney, you need to hire one NOW. If I (in Schenectady and Clifton Park) am local to you, call my office; if not, call a bankruptcy attorney who is geographically close to you (geography makes a difference in bankruptcy). If you don't know someone, you can probably get a referral from your county's bar association, and certainly from the NYS Bar Association (www.nysba.org).

Consider that if you are low-income as defined in their regulations, you may qualify for free or low-cost representation by the Legal Aid Society in your county. Call them to determine this. This is NOT charity, btw; Legal Aid is supported by the interest on attorneys' escrow accounts, and they pay their attorneys.

THE INFORMATION PRESENTED HERE IS GENERAL IN NATURE AND IS NOT INTENDED, NOR SHOULD IT BE CONSTRUED, AS LEGAL ADVICE. THIS POSTING DOES NOT CREATE ANY ATTORNEY-CLIENT RELATIONSHIP BETWEEN US. FOR SPECIFIC ADVICE ABOUT YOUR PARTICULAR SITUATION, CONSULT YOUR ATTORNEY.