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Consumer Bankruptcy : Chapter 7, Chapter 13, Protection From Claims of Creditors
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  #1  
Old 02-12-2009, 11:49 PM
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Join Date: Feb 2009
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After Bankruptcy Court decides on "Proof of claim" what happens to codefendants?


In a previous question, it was stated that "the proof of claim becomes in effect a complaint in the bankruptcy court, and the claim (both validity and amount) will be decided in the bankruptcy court."

This happened in my case involving a defendant/debtor who filed for ch 13 and other codefendants who did not file for bankruptcy. I filed a "Proof of Claim" for this lawsuit. The non-bankrupt codefendants and the ch 13 debtor did not file objections to the "Proof of Claim." A few months later the Bankruptcy Court decided the Claim and allowed it. Now the ch 13 debtor is paying through the ch 13 plan for this Claim of this lawsuit.

How can I collect the rest of this Claim that was already decided by the Bankruptcy Court from the non-bankrupt codefendants?What is the name of your state (only U.S. law)?
  #2  
Old 02-13-2009, 08:19 AM
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Join Date: May 2001
Posts: 6,454
The cosigner is protected by the automatic stay until the case is dismissed or discharged. If the plan payments aren't at 100% once the bk is discharged then, you can proceed against the cosigner.
A few exceptions apply like, is this a consumer debt or not. See a local creditor rights attorney for your specific standing.
  #3  
Old 02-16-2009, 03:04 AM
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Claim was for an injury lawsuit


The Claim was for an injury lawsuit. The Bankruptcy Court decided the Claim for the injury lawsuit & the bankrupt/codefendant is paying through the Bankruptcy Plan. Now that the Bankruptcy Court decided the validity and amount for this Claim, how can the nonbankrupt/codefendant be forced to pay for their part of this Claim?
  #4  
Old 02-16-2009, 07:19 AM
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I"d suggest you pursue this with a creditors rights attorney to be certain you're not violating any stay protection for the nonfiling debtor.
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