Legal Question in Bankruptcy in Maryland

Creditor rights

I have a judgment against the debtor in small claims court. To avoid payment the debtor is considering filing for bankruptcy. Does automatic stay begin with the filing or actual court decision? Will I ever be able to collect the judgement or once the bankruptcy is filed, all my right to collect judgement are gone? If not, when can I renew my collection efforts?


Asked on 2/26/02, 5:12 pm

2 Answers from Attorneys
G. Joseph Holthaus III Law Offices of G. Joseph Holthaus

Re: Creditor rights

The automatic stay commences upon filing the bankruptcy

case. You need to file a proof of claim against this filing.

Unless you otherwise collect before the filing, the stay will preclude

you from effecting your judgment. And, without a proof of claim (and

assets in the estate to settle it), the judgment may be discharged through

the bankruptcy. There are exceptions.

An attorney may be helpful.

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Answered on 2/27/02, 8:42 am
Daniel Press Chung & Press, P.C.

Re: Creditor rights

The automatic stay commences upon filing a voluntary bankruptcy petition. Unless the bankruptcy case is dismissed (for misconduct, abuse, or ineligibility, or for failure to confirm or complete a plan if a Chap. 11 or 13), or unless an order denying a discharge is entered (for misconduct) or your claim is nondischargeable (either if you prove in bankruptcy court that the claim arose out of fraud, defalcation in a fiduciary capacity, theft, or willful and malicious injury) you will not be able to collect outside of bankuptcy. You may be able to file a proof of claim if there are assets in the bankruptcy estate or if the case is under chap. 11 or 13.

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Answered on 2/26/02, 5:47 pm


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