Can you sue a person who has already declared bankruptcy?
Yes - you can still sue someone who has already declared bankruptcy. But it's not that simple. There are several different types of bankruptcy and the rules are completely different depending on the type.
Chapter 13 and Chapter 7 of Bankruptcy
Chapter 13 bankruptcy is a good option for those who have a steady income and are struggling to pay their debts. The biggest benefit of filing Chapter 13 is that the amount you'll have to pay each month will be less than the amount you'd pay in interest on your debts through other means. If you have unpaid medical bills, Chapter 13 can help reduce the amount of money owed on those as well.
Chapter 7 bankruptcy is usually sought out by those who have suffered from job loss or other financial hardships, and who do not have much property or savings they can claim. In this case, the goal of filing is to discharge as many debts as possible in order to rebuild your credit after declaring bankruptcy. It is easier to file for Chapter 7, but it will negatively impact your credit score for up to ten years.
Suing a Person Who Has Already Declared Bankruptcy
When someone files for personal bankruptcy, the courts determine if they can repay the money they owe by looking at their income and their assets. If the court decides that they can't repay what they owe, all of the debt is forgiven except for certain debts that are not covered by federal law. These debts are called 'non-dischargeable debts' and include student loans, taxes, and criminal fines.
The Other Exception
The other exception is when the debtor lied on their bankruptcy papers or did not file them within 6 months of filing for bankruptcy. If a creditor takes a non-dischargeable judgment against the debtor after bankruptcy has been filed, then the creditor cannot enforce it against any assets that were not discharged in bankruptcy.
If a creditor takes a non-dischargeable judgment before a bankruptcy proceeding has begun, then the creditor can enforce it against assets that weren't discharged in the bankruptcy.
If you have any questions, you can get a free consultation with Ascent Law LLC:
Ascent Law LLC:
8833 South Redwood RoadSuite C
West Jordan, UT 84088
(801) 676-5506
