Is it legal if a person filed for bankruptcy and then is suing me for money owed? 11 Answers as of June 03, 2013

Someone is suing me for money they say I owed them in early 2009. In late 2009 that person filed a Bankruptcy Chap 11 Voluntary Petition and didn't list me in the Sch B Accounts Receivable or Other contingent and unliquidated claims of every nature. Can I not use this as a defense in his suit against me, as he declared under perjury, that he has no money owed to him.

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Theodore N. Stapleton, PC
Theodore N. Stapleton, PC | Theodore N. Stapleton
You may have an argument based upon his omission from the chapter 11 schedules of your debt, its called judicial estoppel.
Answer Applies to: Georgia
Replied: 9/26/2011
CONSUMER PROTECTION ASSISTANCE COALITION, INC. (DE).
CONSUMER PROTECTION ASSISTANCE COALITION, INC. (DE). | Gary Lee Lane
No.
Answer Applies to: California
Replied: 6/3/2013
Bankruptcy Law office of Bill Rubendall
Bankruptcy Law office of Bill Rubendall | William M. Rubendall
If a person who is owed money files bankruptcy, they or the trustee can sue. If the right to sue was not listed as an asset in schedule B the schedule must be amended. If the right to sue was not listed in the bankruptcy that fact cannot be used as a defense in the lawsuit, provided the schedule B is amended. Intentionally omitting an asset can result in a denial of discharge
Answer Applies to: California
Replied: 9/22/2011
R. Steven Chambers PLLC | R. Steven Chambers PLLC
Yes, that is a defense known as judicial estoppel. It means that when a person takes a position in one legal proceeding, he may be estopped (prevented) from claiming a different position in a later proceeding.
Answer Applies to: Utah
Replied: 1/8/2013
Janet A. Lawson Bankruptcy Attorney
Janet A. Lawson Bankruptcy Attorney | Janet Lawson
That is a defense, it is called "standing". If there is money owed it is owed to the bankruptcy estate, not the debtor.
Answer Applies to: California
Replied: 9/22/2011
    The Law Office of Darren Aronow, PC
    The Law Office of Darren Aronow, PC | Darren Aronow
    Yes, you can use that as a defense to his lawsuit but it is up to the judge in your civil suit as to whether they feel it is a good defense. My guess is the judge in a civil case will not likely give much merit to his bankruptcy case and will look at this situation that you owe him the money regardless.
    Answer Applies to: New York
    Replied: 9/22/2011
    Heupel Law
    Heupel Law | Kevin Heupel
    Despite his omission, he still has the right to sue you for the debt. You may notify the U.S. trustee of his failure to list the note on Schedule B, but regardless, it is a valid lawsuit against you.
    Answer Applies to: Colorado
    Replied: 9/22/2011
    Colorado Legal Solutions
    Colorado Legal Solutions | Stephen Harkess
    You can use his bankruptcy statementsto support yourdefense, but it may not be a completely effective defense if you do, in fact, owe him money.
    Answer Applies to: Colorado
    Replied: 9/22/2011
    Ashman Law Office
    Ashman Law Office | Glen Edward Ashman
    You may not only have an excellent case but he could end up in federal prison for up to 5 years for perjury. Properly handling this is imperative, as even if you have a defense, if it is not asserted correctly, you lose.
    Answer Applies to: Georgia
    Replied: 9/22/2011
    The Schreiber Law Firm
    The Schreiber Law Firm | Jeffrey D. Schreiber
    Yes, and there is case law (even as recent as this month) that if you sue someone in civil court after bankruptcy and failed to list them in your bankruptcy schedules, that is a defense to being sued and you can move for dismissal or summary judgment as the failure to list you is collateral estoppel to bringing an action later in civil court.
    Answer Applies to: California
    Replied: 9/22/2011
    Eliza Ghanooni, Attorney at Law
    Eliza Ghanooni, Attorney at Law | Eliza Ghanooni
    If he didnt list the money that you owed him, then this is a defense for you. However, if his exemption allows him to protect the amount you owed him, it may be a non-issue. Did he file a chapter 11 or a chapter 7? That would also make a difference.
    Answer Applies to: California
    Replied: 9/22/2011
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