Legal Question in Bankruptcy in Virginia

I cosigned on a lease and the tenant reneged and moved out BEFORE the lease expired. The apartment building came after me via collections. I paid off the collections and now I would like to recoup/recover the $6000 from my niece (the person I cosigned for). I won a judgment against her, BUT she has now filed for voluntary bankruptcy @ the Eastern District of Virginia US BK court. What are my best options and things to consider BEFORE I show up to the first meeting of the Creditors scheduled for 01/31/2011? Thank you in advance.


Asked on 1/15/11, 9:21 am

1 Answer from Attorneys
Robert Brandt The Law Firm of Robert S. Brandt

You did not state which bankruptcy case has she filed? A chapter 7 or a chapter 13 petition? If it is in Alexandria, VA since the meeting of the creditors falls on a Monday, then it must be a chapter 7 filing. If so, and presuming that it is not an asset case (99% of chapter 7 cases are not asset cases) then you would likely be wasting your time by going down there. You are an unsecured creditor and are entitled to no recovery in a chapter 7 no asset case. Going down there will not do much other than listen to the trustee question her to see if she has any unexempt assets. If it does turn out to be an asset case, then all creditors get notified, you would submit a proof of claim, and then possibly get a few pennies on the dollar.

I wish you all the best.

-Robert

Read more
Answered on 1/20/11, 2:02 pm


Related Questions & Answers

More Bankruptcy Law questions and answers in Virginia