smalls claims case during ch 13

Submitted by Anonymous (not verified) on Thu, 07/08/2010 - 10:49
Forums
Credit repair

If someone is in Chapter 13 and is paying monthly, what happens if an individual (not a company) files a small claims action against them at some time during the 5 year repayment period?

Can it be dismissed due to the bankruptcy stay? If yes, what does the person being sued have to do do make this happen?

Aaron

Hi Wondering,

Can you tell me whether or not you included this debt (you are talking about) in the bankruptcy? Also

If someone is in Chapter 13 and is paying monthly

can I know if you are making payment to this debt too?

However, as far as I know the creditor or collection agency cannot sue you after declaration of bankruptcy.

Thanks,

Aaron

Fri, 07/09/2010 - 10:31 Permalink
Barbara_Elena (not verified)

As soon you file a bankruptcy an automatic stay is put on it. This automatic stays prohibits any debt collection activity. This automatic stay continues throughout your life of bankruptcy.
However, the creditor can ask the bankruptcy court to remove the automatic stay but it is most probable that the court will not agree.

Fri, 07/09/2010 - 12:19 Permalink