Legal Question in Real Estate Law in Iowa
small claims and bankruptcy
a woman had rent past due and abandoned the house we rented to her. she left it in shambles and we have filed in small claims. If she declares bankruptcy, can we still garnish her wages and bank account for the past due rent and damages?
3 Answers from Attorneys
Re: small claims and bankruptcy
No. The filing of a petition in bankruptcy creates an automatic injunction against
creditors of your nature. You can't take any action against a debtor without prior
approval from bankruptcy court.
Re: small claims and bankruptcy
Normally, no. If the woman files a chapter 7
(liquidation) bankruptcy, you are precluded from
taking any steps to enforce any judgment or other
claim. Your only recourse, if you recieve a
judgment before she files bankruptcy, is to have the
court issue a writ of execution on the judgment. That creates
a judgment lien in your favor. Then, if there are
any assets to be liquidated in the bankruptcy, then
you can file a Proof of Claim, and maybe get some
distribution from the bankruptcy estate as a secured
creditor.
Be aware though,that you need to wait 35 from the
date of entry of a small claims judgment before
you can begin enforcement proceedings such as
seeking a Writ of Execution.
The foregoing information is provided as an
accommodation only, and does not constitute legal
advice or a legal opinion based on a comprehensive
review of all relevant facts, nor can provision of
such information be construed as creating an
attorney-client relationship.
Re: small claims and bankruptcy
No, not usually. Depends on the type she files and what kind of assets she has. If you get a small claims judgement garnish her immediately. The better bet is to find out where her bank account is and attach that.
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