Legal Question in Credit and Debt Law in New York
Help, Judgment Discharged?
I have an outstanding small claims judgment against someone for some time, which thus far I have been unable to collect. I recently saw this person shopping, and when I asked him about paying the judgment, he very smugly told me that after my judgment was entered, he was granted bankruptcy and my judgment was worthless, and that I could you-know-what. I was never notified he filed, and when I went to check at the bankruptcy court, I confirmed that he indeed was granted bankruptcy. But neither my name nor my judgment appears anywhere on the list of creditors. Is it true the bankruptcy court can discharge a judgment it had no knowledge of, because the defendant never told the court it even existed? Also, does it matter if the bankruptcy is chapter 7 or chapter 13?
2 Answers from Attorneys
Re: Help, Judgment Discharged?
If you were not listed in the bankruptcy schedules as a creditor, then your judgment and the underlying debt are still in full force and effect. How nice of your deadbeat to remove all the other claims on his assets! You should get a transcript of the judgment, file it with the county clerk, and issue an execution to the sheriff. But do make certain that you are not listed in the bankruptcy schedule.
Re: Help, Judgment Discharged?
While tehcnically Kevin is correct, the truth is that your debtor can amend his bankruptcy schedule to include your judgment AFTER THE FACT and you'll have wasted all that time and money for nothing. If you know where the debtor banks I suggest you simply serve the bank with an Information/Restraint subpoena...If the bank is holding funds for the debtor your judgment will entitle you to lock two times the judgment amount up (restrain them)which will make the funds unavailable to your smug friend for up to a year. Maybe he'l agree to settle if we can't get to his money...
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