Legal Question in Civil Litigation in Texas
I just took someone to small claims for money owed. After I said 2 sentences and gave the judge the payment plan agreement, the judge asked the defendant (who appeared telephonically) if she had e-mailed me that agreement and the defendant said yes only after I had sent her threatening emails (which is not true) and continued talking for about 2 minutes about things that happened to her and at the end said she filed bankruptcy. Immediately the judge asked the defendant to fax it to her the next day and put a stay on the case and it was over. My question is can I do anything about the defendant lying under oath (I have all of the emails)? Also shouldnt the defendant have to contact the court or me (I am listed as a creditor) about her filing bankruptcy before the court date? And what does a stay mean?
1 Answer from Attorneys
A stay freezes any ongoing action and prevents new actions until after the bankruptcy case is resolved.
When someone files bankruptcy, the statute imposes an "automatic stay" the prevents the collection of debts and any litigation. To file a lawsuit while someone is in bankruptcy, you would have to go to the bankruptcy court to file a motion to lift stay.
Defendants can file bankruptcy at any time.
Debtors who file bankruptcy must give notice to all of their creditors. If this defendant does not list you as a creditor or provide you notice in accordance with the bankruptcy code, then the debt against you may not be not discharged.
Check with the small claims court and see if the defendant provided the notice of bankruptcy that the judge requested. If not, check with the local bankruptcy court and determine whether the defendant has filed bankruptcy. If she has not, get a statement to that effect from the court personel and show it to the judge of the small claims court.
Not all debtors who file bankruptcy have their debts discharged. For any number of reasons, a case could be dismissed. Keep track of her case. If it is dismissed, get a copy of the dismissal and go back to small claims court on your suit.
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