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View Full Version : Am I eligible for judgement since the other party defaulted on bankruptcy?


moorela3
Jul 29, 2010, 02:01 PM
I won a judgement in Small Claims Court in Tarrant Co. TX against a contractor that did work in my home. The day of the court case, the contractor didn't show up for court, but instead, he and his wife went down and filed for bankruptcy. Even though I won the judgement, I received a notice from their bankruptcy lawyer telling me that even though I won the judgement, they didn't have to pay me because they had filed for bankruptcy. Since then, I have been notified that they defaulted on their bankruptcy agreement.
Do I have any right to attempt to recover the amount of the judgement?

twinkiedooter
Jul 29, 2010, 02:29 PM
You have every right now to proceed with your collection of your judgement. The problem might be just where are you going to get the judgment monies from if they've declared bankruptcy. I'd start right away.

AK lawyer
Jul 29, 2010, 05:25 PM
... Since then, I have been notified that they defaulted on their bankruptcy agreement. ...

Be very careful here. While it may be that the automatic stay of bankruptcy is lifted, one can't be sure by what you have told us.

By "bankruptcy agreement", do you mean a Chapter 13 plan? If so, has the bankruptcy case been dismissed yet? You cannot proceed until it has actually been dismissed.

If so, you would submit the order of dismissal to the small claims court and move for judgment.

Fr_Chuck
Jul 29, 2010, 06:52 PM
You as a creditor has the right to verify the bankruptcy status with the court. That is your first step.

If they are no longer under protection of the court, and it was not discharged, then yes you can attempt to collect.
But you want this verified personally at the court prior to any action.