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Does filing for bankruptcy stop any small claims court action, even for supposed malicious damage.

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  • Does filing for bankruptcy stop any small claims court action, even for supposed malicious damage.

    Does filing for bankruptcy stop any small claims court action filed against me as well?

    The plaintiff alleges I keyed his car and wants 700 dollars. Does bankruptcy stop that kind of action where the plaintiff alleges I purposely did something bad to him (which I didn't BTW).

    He can't file any criminal case because there is no real evidence. Just his feeble-minded "hunch".

  • #2
    The actual filing of bankruptcy (submitting your petition to the court) results in an automatic stay of any collection or lawsuit activities against you (even small claims). You'll need to list him as a creditor (or potential creditor) or plaintiff and send him the appropriate bankruptcy notices.

    He would be entitled to file an adversary action where he asks the court to lift the stay for his action against you. Then it's up to the court to decide and to also ultimately decide if that potential debt is to be discharged or not.

    Do you have homeowners or renters insurance? If yes, report the claim and let the experts handle it. That's why you pay insurance premiums.

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    • #3
      Originally posted by Blest View Post
      Does filing for bankruptcy stop any small claims court action filed against me as well?

      The plaintiff alleges I keyed his car and wants 700 dollars. Does bankruptcy stop that kind of action where the plaintiff alleges I purposely did something bad to him (which I didn't BTW).

      He can't file any criminal case because there is no real evidence. Just his feeble-minded "hunch".
      The BK does not allow you to automatically clear severe fraud or wilful damage that you caused. If any.
      But anything a plaintiff might want to pursue has to have court approval. So it would have to be pretty egregious or the bk court will just treat it like any other bill or claim.

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      • #4
        The judge will likely stop the case in this consumer bankruptcy. As he will any other case pending. It's just a distraction.

        If the plaintiff wants to pursue it he may have to convince a prosecutor to take the case as a criminal matter, and as noted by you Blest, that is not likely to happen.

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        • #5
          Stops almost every lawsuit unless you basically were doing something clearly illegal, or that is what is alleged.

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          • #6
            As a practical matter it stops almost every lawsuit the average consumer would have. And potential creditors then have to deal with the issue through the bk court.

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            • #7
              Before they can even make a legal assertion you owe the money, they must obtain a court judgment, where they are required to prove their case if you show up and dispute it. Bankruptcy over $700 is not really in your favor even if the money were dis chargeable.
              Due to a recent promotion, I should now be referred to as Major Obvious.

              I would not be trying to provide information and knowledge if I did not sympathize.

              Some days it is just not worth chewing through the restraints to face life.

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