If someone is filing bankruptcy who owes me money, is it over and can I do anything further? 8 Answers as of May 26, 2016

An ex-client owes me quite a bit of money for services I completed. I recently found out that he is possibly filing bankruptcy. Is there anything I can do to prepare? Is it over? Can I still fight for my money?

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Ronald K. Nims LLC | Ronald K. Nims
The first thing to consider is whether it's possible to make your account secured. For example, if you provided services to repair, build or remodel a house or building, you can file a mechanic's lien which may preserve your right to be repaid. The next thing is did the ex-client lie to you in order to get you to extend credit? If so, your debt might not be dischargeable in bankruptcy. If you receive notice of the bankruptcy, go over his filing with a bankruptcy attorney. Did the ex-client recently have vehicles, boats, houses or other expensive property that doesn't appear on the bankruptcy schedules? What happened to that property? Another thing that must be considered is whether the ex-client made any payments to you before filing bankruptcy that might be "clawed back" and distributed to all creditors.
Answer Applies to: Ohio
Replied: 5/26/2016
Richard B. Jacobson & Associates, LLC | Richard B. Jacobson
Almost any collection against a debtor within 90 days of his filing a BR can be 'undone' or 'avoided' by the Trustee. This includes your obtaining a security interest in any of his property. Most debts are dischargeable in bankruptcy. There are about 15 or so exceptions, one of which is fraud; also larceny and embezzlement. But you have to be ready to prove it in a forum which at least initially favors the debtor. Retain a skilled BR lawyer and see if he or she can find some reason to challenge this debtor's discharge. But it will not be easyat least if your query contains all the relevant facts.
Answer Applies to: Wisconsin
Replied: 5/26/2016
Eranthe Law Firm
Eranthe Law Firm | Cate Eranthe
If there are any assets to be distributed the court will sent you a notice. You can then fill out and file a Proof of Claim to receive your share of the distribution. Check the case to be certain you are listed and they have your current address. You can also consult with a knowledgeable local bankruptcy attorney who can provide you with more information and access the likelihood based on the specific case.
Answer Applies to: California
Replied: 5/26/2016
Janet A. Lawson Bankruptcy Attorney
Janet A. Lawson Bankruptcy Attorney | Janet Lawson
Not likely there is anything you can do. If you think fraud was involved, see local counsel.
Answer Applies to: California
Replied: 5/26/2016
Patrick W. Currin, Attorney at Law | Patrick Currin
Unless they are fraudulent in hiding income or assets your claims will be discharged.
Answer Applies to: California
Replied: 5/26/2016
    GARCIA & GONZALES, P.C.
    GARCIA & GONZALES, P.C. | Richard N. Gonzales
    You will need to contact an experienced BK lawyer to look at the schedules. The sooner the better. You will have to pay for this advice, but you need this information to make a decision. One hour of the attorney's time should cover the initial consultation. Good luck!
    Answer Applies to: Colorado
    Replied: 5/26/2016
    Goldsmith & Guymon
    Goldsmith & Guymon | Marjorie Guymon
    I suggest you wait to see what type of bankruptcy is filed. There is a possibility that you could be paid something if not all of your claim.
    Answer Applies to: Nevada
    Replied: 5/26/2016
    A Fresh Start
    A Fresh Start | Dorothy G Bunce
    There are a few narrow steps that creditors can take to object to a discharge of a debt in bankruptcy. Most of the reasons for objecting to a discharge are contained in 11 USC sec 523. But I see people who attempt to fake out their creditors from pursuing collecting by claiming they intend to file bankruptcy. They may make this claim even though they have never consulted with a bankruptcy attorney, are not eligible to file bankruptcy, or may even have no intention of filing bankruptcy.
    Answer Applies to: Nevada
    Replied: 5/25/2016
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