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Bankruptcy and Small Claims Courts

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damistygal

Guest
What is the name of your state? Louisiana

Hi,
I have a question regarding the automatic stay law regarding BK and small claims court. Ok here goes:
On May 28, 2003, I retained a law office to file Ch. 13 due to my mortgage. I was scheduled to go in and pay my filing fee on June 16, 2003, and sign the documents. On June 4, 2003, I received a small claims dockett from an ex neighbor stating that He believe I owe him money for lawyers fees. I called the Small Claims Court and notified them that I was in the process of filing Ch.13, and the clerk told me to bring in my answer statement and a letter from my lawyer stating that I retained their office for Ch.13.
I filed my answer stating that I do not owe the plaintiff ANY of what he is suing for, and brought in the letter from the retained lawyer. On June 16, 2003 I went in as planned with my filing fee and signed documents. Today, June 18, I received a certified letter from small claims with my trial date and time in 60 days. I immediately called the clerk and informed her once again of my status and she told me it wasn't up to the courts to dismiss the plaintiff's case because it's up to the Plaintiff. When I read the BK law, it stated that during the automatic stay period no new lawsuits could be filed against you and pending lawsuits could not go forward. Does he have to be put in my plan for the lawsuit to not go forward? If so, I might as well go ahead and go to court because I am not putting him into my plan because I do not owe him. So my questions are:
Can he proceed with the lawsuit even though I have notified the courts of my recent filing of Ch. 13?
Isn't it deemed contempt of court if the claims court allows the lawsuit to procede?
If I can stop the lawsuit from proceeding, what do I need to do to remedy this?
Thank you all so much for reading this and your replies.
Kai
 
Last edited:


racer72

Senior Member
The automatic stay goes into effect when the BK in filed with the federal court. Just because you have an attorney and paid him does not mean the stay is in effect. Take the court papers to your attorney, when he files for the BK, he will notify all those involved (including your neighbor) that a stay is in effect and to stop any collection efforts. The stay does not mean the lawsuit will be dismissed or cancelled, it will just be delayed.
 

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