Is there any way to collect money after a client has filed bankruptcy? Or do we just accept it as a loss?
2007-01-11 04:26:27 · 11 answers · asked by Miss Felisha 1 in Business & Finance ➔ Other - Business & Finance
If you are aware that someone filed bankruptcy and you are trying to collect a debt you are knowingly violating 11 U.S.C. §362.
http://www4.law.cornell.edu/uscode/11/usc_sec_11_00000362----000-.html
The debtor can then file a lawsuit against you.
Unless you file a complaint in the bankruptcy to determine the discharge-ability (fraud involved or the debtor incurred a debt with the intentions of not paying), you must accept it as a loss.
2007-01-11 08:33:29 · answer #1 · answered by Anonymous · 0⤊ 0⤋
If the debt is the result of a lawsuit judgement, you can file to have the person's wages garnished. However, they only take money that is above the "poverty" line benchmark, so if the person only makes $1 above the line, you will get $1 every payday forever. If the person has claimed you as a creditor on his/her bankruptcy, you are screwed and you have to write it off. Some states allow you to go to arbitration so you can collect some of the money, but it is hard and costly to do. Better just to write it off.
2007-01-11 04:32:46 · answer #2 · answered by Brad 4 · 1⤊ 0⤋
No, you cannot. The point of bankruptcy is to give the person a clean slate. At the time, you could have files a proof of claim , which may have done something for you, but in general, you're out of luck.
2007-01-11 04:35:23 · answer #3 · answered by melouofs 7 · 0⤊ 0⤋
Well first off, if you were a business trying to collect money, you woudln't be asking a bunch of people on Yahoo.
Now if you are the person who filed bankruptcy or are thinking about it, ask your bankruptcy lawyer.
2007-01-11 04:30:07 · answer #4 · answered by 81 Honda 5 · 0⤊ 2⤋
no, you cannot collect on an old debt after somebody has declared bankruptcy.
2007-01-11 04:29:54 · answer #5 · answered by Anonymous · 0⤊ 0⤋
Take them to court after they are out of bankruptcy
2007-01-11 04:30:17 · answer #6 · answered by Love always, Kortnei 6 · 0⤊ 2⤋
All you can do is to make sure that you are on the list of creditors. It may be that debts will be discharged only in part, rather than in full, in which case you will get something.
2007-01-11 04:30:11 · answer #7 · answered by Anonymous · 2⤊ 0⤋
It depends, which did they file ?.........chapter 13 or 7?
Also were you notified of the filing?
Was it a substantial amount or just a few bucks?
2007-01-11 04:37:00 · answer #8 · answered by LucySD 7 · 0⤊ 0⤋
there might be but only after the important bills get paid. Think of it as a loss and hopefully you get something someday
2007-01-11 04:31:16 · answer #9 · answered by nj2pa2nc 7 · 0⤊ 0⤋
There is some company that help ppl to collect money, check the yellow pages!
2007-01-11 04:29:36 · answer #10 · answered by Anonymous · 0⤊ 2⤋