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Consumer Bankruptcy : Chapter 7, Chapter 13, Protection From Claims of Creditors
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  #1  
Old 09-24-2002, 06:39 PM
Frogger6742
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Need Ch7 advise -kinda long


Texas chapter 7

Recently I took a guy who owed me $700 to small claims court. Before the case could be heard he filed chapter 7. I was told by his attorney that I would receive a document that indicated I was listed as a creditor in his filing, and that a creditors meeting would be scheduled. Well....

The attorney filed the chapter 7 with a minimum number of creditors, and then followed up with an admended list of creditors. I guess this is to effect a stay until the atty gets the required paperwork complete. I was listed in the amended list of creditors. However, I never received a notice of a creditor meeting.

I went down to the Bankruptcy court today to find out what was going on. They told me that the case was discharged effective 9/23/02 and that it was pending final documents.

Ok, what about my oppurtunity to be at a creditor meeting? I was told to see the filing attorney and if they could not resolve the matter, set up a meeting with the trustee.

Here is where I need advise. I have a meeting with the filing attorney tomorrow to discuss the matter. I'm not sure how to play my cards.

I think that I should ask for the $700 from the atty or creditor, I really don't care who pays me I suspect that NONE of the creditors listed in the six page amended creditor list were notified properly. This suspicision was reinforced by the bankruptcy clerk.

If I don't get paid, I intend on contacting all of the listed creditors and inform them of the processing error. That sounds bad for the atty and filing party.

Any comments or suggestions? Thanks!
  #2  
Old 09-26-2002, 10:33 AM
skwirl
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If you were an unsecured creditor you wouldn't get a penny anyway. When someone declares bankruptcy(chapter 7) this totally wipes out all unsecured debts. Even secured debts aren't paid in full, usually they only get back what was used as collateral, which in some instances isn't worth what is owed. Sorry to tell you, but more than likely you are out of $700. Demanding it from the trustee or lawyers won't help and going to the meeting of the creditors wouldn't have helped you either.
  #3  
Old 09-30-2002, 11:07 AM
Frogger6742
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What about complaining to the trustee, and requesting that they "throw out" the Ch7 and force the guy to file a 13? Not that I would get any money in the 13, but it would cause the debtor alot of grief
  #4  
Old 09-30-2002, 11:21 AM
skwirl
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It may seem like going to the meeting of creditors gives you your day in court but the trustee won't let a creditor "badger" a person declaring bk. You can't "force" someone into a chapter 13 either. If their petition is in order and their debt outweighs assets and income then it's all pretty "black and white". It's the trustee's decision after looking over the petition to decide if a person is eligible for a chapter 7 or a 13, usually a good bk lawyer will know that answer and won't even let you file a ch 7 if he knows you are eligible for a 13 anyway.
Unless you can prove fraud of some kind it really doesn't do much good..that's why you don't see many creditors wasting their time going to the 347. It's just not worth the time or effort.
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