Can sheriff's sale be stopped before

[KhakiCampbell]

What is the name of your state (only U.S. law)? Pennsylvania
I have an order of execution sale scheduled for October 10th on a judgment that was awarded in my favor. The defendant keeps threatening me that he will file for bankruptcy. Can he stop the sheriff's sale of his truck by simply adding this judgment to the initial filing for bankruptcy or can he only stop it when it is final and the debts are discharged? He said he filed for bankruptcy a month ago, but I've heard it can take up to 4 months to complete a bankruptcy.

 

[Mark Maroon]

What is the name of your state (only U.S. law)? Pennsylvania
I have an order of execution sale scheduled for October 10th on a judgment that was awarded in my favor. The defendant keeps threatening me that he will file for bankruptcy. Can he stop the sheriff's sale of his truck by simply adding this judgment to the initial filing for bankruptcy or can he only stop it when it is final and the debts are discharged? He said he filed for bankruptcy a month ago, but I've heard it can take up to 4 months to complete a bankruptcy.

I am not a bankruptcy attorney, but I do believe that you need to proceed cautiously if a judgment debtor asserts to you that they filed for bankruptcy. First off, you need to determine if they are telling the truth. You can obtain a PACER account and search the appropriate bankruptcy courts to see if they actually filed for bankruptcy. If they did, then I believe that in most cases (except perhaps maybe in a case in which your judgment was based on some type of fraud) you must cease all collection efforts outside of the bankruptcy proceedings. But monitor the bankruptcy case. Often people will file for bankruptcy, but then not complete the process. When that happens, as soon as the bankruptcy is dismissed (not discharged) for their failure to file something or whatever, then you can continue your collection efforts.

You can request to the bankruptcy trustee that the asset and/or the judgment be listed in the bankruptcy, and/or you can request that one or the other or both be excluded from the bankruptcy. But depending on the type of bankruptcy, it is possible that even if the defendant didn't list either you are still SoL.

 

[LdiJ]

What is the name of your state (only U.S. law)? Pennsylvania
I have an order of execution sale scheduled for October 10th on a judgment that was awarded in my favor. The defendant keeps threatening me that he will file for bankruptcy. Can he stop the sheriff's sale of his truck by simply adding this judgment to the initial filing for bankruptcy or can he only stop it when it is final and the debts are discharged? He said he filed for bankruptcy a month ago, but I've heard it can take up to 4 months to complete a bankruptcy.

The filing of bankruptcy automatically places a "stay" on any attempt to collect or seize assets...whether there is a judgment in place or not. Therefore yes, he could at least temporarily stop the sheriff's sale, pending the outcome of the bankruptcy.

 

[KhakiCampbell]

The filing of bankruptcy automatically places a "stay" on any attempt to collect or seize assets...whether there is a judgment in place or not. Therefore yes, he could at least temporarily stop the sheriff's sale, pending the outcome of the bankruptcy.

He said "As I informed the constable I have already filed bankruptcy earlier this month. Against my attorneys advice I have not included this judgement into that preceding as of yet nor do I intend to as long as I have some guarantee my property will not be sold to satisfy the judgement. Should I not receive notice of a stay of execution by 10/3/2014 I will have no choice but to include this judgement into those proceedings. As you are personally aware bankruptcy will limit the amount you receive. I would rather avoid that and pay you what you were awarded."

My gut tells me he is lying. . . trying to buy time for some reason.

 

[single317dad]

He said "As I informed the constable I have already filed bankruptcy earlier this month. Against my attorneys advice I have not included this judgement into that preceding as of yet nor do I intend to as long as I have some guarantee my property will not be sold to satisfy the judgement. Should I not receive notice of a stay of execution by 10/3/2014 I will have no choice but to include this judgement into those proceedings. As you are personally aware bankruptcy will limit the amount you receive. I would rather avoid that and pay you what you were awarded."

My gut tells me he is lying. . . trying to buy time for some reason.

Well, he sounds serious. Perhaps you should either contact the court or follow the other member's advice and check PACER for a record.

What does sound shady is his asking for a "guarantee" that the truck won't be sold. That sort of agreement will leave someone on weak legal footing and shouldn't be entered into lightly.

 

[KhakiCampbell]

Well, he sounds serious. Perhaps you should either contact the court or follow the other member's advice and check PACER for a record.

What does sound shady is his asking for a "guarantee" that the truck won't be sold. That sort of agreement will leave someone on weak legal footing and shouldn't be entered into lightly.

He used to be a police officer, so he likes to use his knowledge of the law to intimidate. He's not as bright as he would like to think. For instance, he submitted an "Intent To Defend" listing "New Matter", however it was addresssed to the Court of Common Pleas and I filed my complaint with the Magisterial District Court, which doesn't address "New Matter". After all of that, he was a no show, and I got a default judgment in my favor. . . . not to mention his poor spelling and grammar. That is why I'm trying to decypher his threat, but it looks like I should stop the sale when the payment is received, although I have a sneaking suspicion he's up to no good.

 

[KhakiCampbell]

He used to be a police officer, so he likes to use his knowledge of the law to intimidate. He's not as bright as he would like to think. For instance, he submitted an "Intent To Defend" listing "New Matter", however it was addresssed to the Court of Common Pleas and I filed my complaint with the Magisterial District Court, which doesn't address "New Matter". After all of that, he was a no show, and I got a default judgment in my favor. . . . not to mention his poor spelling and grammar. That is why I'm trying to decypher his threat, but it looks like I should stop the sale when the payment is received, although I have a sneaking suspicion he's up to no good.

A little more background.... We used to date and shared a residence. When I was out of the country he collected $2,500 of overdue payroll from a previous employer and never gave me the funds he collected when I returned. A few weeks before I moved out, he ended up in jail for back child support. . . like an idiot I bailed him out at the tune of $1,000. Add that together with rent, gas for his truck and his cell phone bills I paid, the judgment was for $4,000. When I moved out in July of 2013, I asked him if and when he was going to repay me the money he owed me. He said, "Sue me", and that if I contacted him again he would press charges against me for "harrasment by communication". So here I am, over a year later.... at this point, it's not the money, it's the principle!

 

[Dave1952]

Has your attorney determined that this fellow has filed for bankruptcy. If not either you or he needs to research this.
You write "I have not included this judgement into that preceding as of yet nor do I intend to as long as I have some guarantee my property will not be sold to satisfy the judgement." What property is your property? Do you mean his truck? If he has filed bankruptcy then you need to get in line with his other creditors.

 

[TigerD]

He said "As I informed the constable I have already filed bankruptcy earlier this month. Against my attorneys advice I have not included this judgement into that preceding as of yet nor do I intend to as long as I have some guarantee my property will not be sold to satisfy the judgement. Should I not receive notice of a stay of execution by 10/3/2014 I will have no choice but to include this judgement into those proceedings. As you are personally aware bankruptcy will limit the amount you receive. I would rather avoid that and pay you what you were awarded."

My gut tells me he is lying. . . trying to buy time for some reason.

He's lying. All that property you are about to sell doesn't belong to the debtor. At the exact minute he filed bankruptcy it became an asset of the bankruptcy estate. If he is serious, he is setting you up for a big hit.

You absolutely must talk to a creditor's rights attorney. Sanctions can be quick and harsh for people violating the automatic stay.

DC

 

[LdiJ]

He said "As I informed the constable I have already filed bankruptcy earlier this month. Against my attorneys advice I have not included this judgement into that preceding as of yet nor do I intend to as long as I have some guarantee my property will not be sold to satisfy the judgement. Should I not receive notice of a stay of execution by 10/3/2014 I will have no choice but to include this judgement into those proceedings. As you are personally aware bankruptcy will limit the amount you receive. I would rather avoid that and pay you what you were awarded."

My gut tells me he is lying. . . trying to buy time for some reason.

Nevertheless, if he does file bankruptcy it will automatically put a stay on any sheriff's sale.

 

[Mark Maroon]

He said "As I informed the constable I have already filed bankruptcy earlier this month. Against my attorneys advice I have not included this judgement into that preceding as of yet nor do I intend to as long as I have some guarantee my property will not be sold to satisfy the judgement. Should I not receive notice of a stay of execution by 10/3/2014 I will have no choice but to include this judgement into those proceedings. As you are personally aware bankruptcy will limit the amount you receive. I would rather avoid that and pay you what you were awarded."

My gut tells me he is lying. . . trying to buy time for some reason.

First things first. You absolutely must find out if he has actually filed for bankruptcy, and if so then what type/version of bankruptcy did he file and when did he file, and what assets were included, and what debts were included. If you don't know how to find answers to these questions, then ask someone. If he didn't file for bankruptcy, then proceed in your asset collection efforts. If he did file for bankruptcy, then you must cease and desist all collection efforts, and what happens next to your claim depends on what type of bankruptcy he filed and if he included your judgment as a debt in his bankruptcy and how the bankruptcy is concluded.

BTW, once he files for bankruptcy he cannot pick and choose what debts he pays and what debts he doesn't pay. Once he files for bankruptcy ALL of his assets and ALL of his debts become part of the bankruptcy. If he deliberately tries to exclude certain assets or debts, he does so at his own peril. And if you accept payment of your debt separately outside of the bankruptcy then you do so at your peril.

Finally, you are right there's something fishy about his statements. Why would someone file for bankruptcy, and then deliberately leave out a debt and tell the debtor that you want to pay them outside of the bankruptcy - why not just include the debt in your bankruptcy so that you don't have to pay it at all (or you pay very little of it, depending on the type of bankruptcy that you file). I suspect that he hasn't filed - and that he won't file. But you have to be 100% sure or you can get into big trouble with the bankruptcy court for trying to collect assets that should be part of the bankruptcy to pay a debt that should be part of the bankruptcy.

 

[KhakiCampbell]

He has not filed for bankruptcy

First things first. You absolutely must find out if he has actually filed for bankruptcy, and if so then what type/version of bankruptcy did he file and when did he file, and what assets were included, and what debts were included. If you don't know how to find answers to these questions, then ask someone. If he didn't file for bankruptcy, then proceed in your asset collection efforts. If he did file for bankruptcy, then you must cease and desist all collection efforts, and what happens next to your claim depends on what type of bankruptcy he filed and if he included your judgment as a debt in his bankruptcy and how the bankruptcy is concluded.

BTW, once he files for bankruptcy he cannot pick and choose what debts he pays and what debts he doesn't pay. Once he files for bankruptcy ALL of his assets and ALL of his debts become part of the bankruptcy. If he deliberately tries to exclude certain assets or debts, he does so at his own peril. And if you accept payment of your debt separately outside of the bankruptcy then you do so at your peril.

Finally, you are right there's something fishy about his statements. Why would someone file for bankruptcy, and then deliberately leave out a debt and tell the debtor that you want to pay them outside of the bankruptcy - why not just include the debt in your bankruptcy so that you don't have to pay it at all (or you pay very little of it, depending on the type of bankruptcy that you file). I suspect that he hasn't filed - and that he won't file. But you have to be 100% sure or you can get into big trouble with the bankruptcy court for trying to collect assets that should be part of the bankruptcy to pay a debt that should be part of the bankruptcy.

I'm relieved that this doesn't add up for you either. Your confirmation of the bankruptcy process only confirms my suspicions that it is all a lie.

I got an account with PACER.gov and even waited for the authentication code to be mailed to me. To date, there has been no bankruptcy filed under his name. I have received a $400 payment for the 4 payments that he missed in September and an email with a photograph of another check for $100 he says that he mailed on 10/4 that I have not received yet. (Payment was due on 10/3). He has moved to another address since his eviction and has informed the constable of his current address.

Do I continue with the sale since he has defaulted on the payment arrangements by sending late payments? I know that he is trying to manipulate me, but I'm not sure of his motive. Is he just trying to run me circles by sending the bare minimum to get me to stay the sale, then stop sending payments so that I have to go through the process of getting the order of execution reissued and sending out the constable again? So frustrating. I just want to be done with this! My gut says, I have him just where I need him, I should go ahead with the sale.

 

[KhakiCampbell]

Has your attorney determined that this fellow has filed for bankruptcy. If not either you or he needs to research this.
You write "I have not included this judgement into that preceding as of yet nor do I intend to as long as I have some guarantee my property will not be sold to satisfy the judgement." What property is your property? Do you mean his truck? If he has filed bankruptcy then you need to get in line with his other creditors.

According to PACER, he has not filed bankruptcy. Upon the Order of Execution, the constable visited his residence and sent me a Notice of Execution Sale. His truck is currently slated for sheriff's sale on 10/10/2014 to satisfy this judgment.

 

[KhakiCampbell]

He's lying. All that property you are about to sell doesn't belong to the debtor. At the exact minute he filed bankruptcy it became an asset of the bankruptcy estate. If he is serious, he is setting you up for a big hit.

You absolutely must talk to a creditor's rights attorney. Sanctions can be quick and harsh for people violating the automatic stay.

DC

He hasn't filed as of yet, according to PACER, however, since the Execution Sale is being handled by the constable under the direction of the District Court, am I vulnerable to a big hit? Wouldn't he have to submit paperwork to the court advising of his bankruptcy filing?

 

[TigerD]

He hasn't filed as of yet, according to PACER, however, since the Execution Sale is being handled by the constable under the direction of the District Court, am I vulnerable to a big hit? Wouldn't he have to submit paperwork to the court advising of his bankruptcy filing?

1. You don't that that he hasn't filed. You know that you have not found the filing. (Those are two very different things and the difference is very important). There are a number of questions: Are you searching the correct court? Are you using the correct spelling? The correct name? I don't like absolute statements from novices because there are too many potential points of error.

2. If he filed bankruptcy, yes, you are vulnerable to a big hit.

3. When he files bankruptcy, the bankruptcy court will notify all the creditors listed in the matrix. If he fails to list a creditor, they won't be notified unless they check. Ultimately, in many cases, a creditor that isn't notified will not make a deal out of it because there are no assets to get. That being said, if he failed to notify you or list the asset and he filed bankruptcy, you both have a problem if the sale goes through.

Be sure you are right.

DC

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Edit to add:
You really should visit with an attorney. You mentioned payments. We don't know the basis of this sale, but it seems sufficiently complicated for the internet. You need to make sure you have a right to seize his property and sell it. Being wrong could get very expensive if he gets an attorney.