Can I still collect on a default judgemnt against the defendant if he filed for bankruptcy?

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Can I still collect on a default judgemnt against the defendant if he filed for bankruptcy?

Under discharge of debts, if I believe the debtor is not entitled to receive a discharge of the debt under bankruptcy code section 727(a) or that a debt owed to me is not dischargeable under bankruptcy code section 523(a)(2), (4), or (6), then I must file a complaint, or a motion if I assert the discharge should be denied under 727(a)(8) or (a)(9). It seems that if I were to file a complaint or motion, it would fall under section 523: defalcation/fraud in a fiduciary capacity or under payment of an order for restitution.

Asked on March 11, 2012 under Bankruptcy Law, Arizona

Answers:

MD, Member, California Bar / FreeAdvice Contributing Attorney

Answered 10 years ago | Contributor

If your debtor filed for bankruptcy and he included this debt in the bankruptcy, you would get notice of the bankruptcy filing and have an opportunity to do a few things. You can file a claim and also file an objection based on your belief (hopefully supported by sufficient written evidence) that this debt is not dischargeable by operation of law or should not be part of the debts to be discharged and you must file then a waiver from the automatic motion to stay. This will then give you the opportunity to try to collect the debt that would otherwise be stayed by automatic operation of the bankruptcy filing.


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