Legal Question in Bankruptcy in Oregon
Bankrupting without notice to creditor
If a business declares bankruptcy and seeks refuge from its creditors, but fails to mention a particular creditor so that that creditor never receives notice of the bankruptcy, does the debtor's debt to that creditor still get expunged?
We had such an instance, and when we attempted collection we were told by the debtor's attorney that what we were doing was illegal and we could be sued. It hardly seems fair, since we were never told of the bankruptcy claim nor permitted to establish our claim to a portion of the remains.
What can we do, if anything??? >
2 Answers from Attorneys
Request copy of 'Matrix'. . .
Contact BR Court Clerk in the jurisdiction of the filing and request a copy of the creditors listed--if you were not indeed listed, as a business or as an individual, you should not be barred from proceeding against the debtor unless there are some unknown circumstances with address, etc.
Discharge - unscheduled debts
If the debt owed to you was not included in the schedules of the debtor's debts, it is not discharged. If it was included in the schedules but you were not included in the mailing matrix (a) if it was a no-asset estate (no money to be distributed to creditors), your debt is discharged. If the estate was solvent, i.e., there were assets to distribute to creditors, you can petition to have the bankruptcy re-opened and the debtor will be faced with some extraordinary costs (which could possibly be avoided by settling your claim). Talk to a lawyer who handles businesses and bankruptcies.
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