The suit was originally filed before the Chapter 7 petition. The debt collection attorney requested a continuance instead of a voluntary nonsuit.
I have indicated my intention to surrender the secured property on my "Statement of Intention", I am willing to surrender the property, and I have in no way indicated otherwise.
Should I request that the local court dismiss the case, or are they allowed to continue seeking a judgement under the premise of obtaining or securing their property?
Any part of the suit that ask for you to pay money is stayed by the bankruptcy. The creditor needs to get permission of the court to go after the property while the case is active, but once it is over, the creditor can proceed with an action against the property only - if it asks you for money (court costs, attorney fees, etc.) then it is in violation of the discharge injunction.
Family Law Attorney
Make sure both the court and the creditor's attorney has a copy of your Notice of Bankruptcy (issued by the court). If you have received your Notice of Discharge, send that, too. Creditor cannot get a judgment against you while BK is pending, nor after you get your discharge.
Be sure to designate "best answer." If you live in Oregon, you may call me for more detailed advice, 503-650-9662. Please be aware that each answer on this website is based upon the facts, or lack thereof, provided in the question. To be sure you get complete and comprehensive answers, based upon the totality of your situation, contact a local attorney who specializes in the area of law that involves your legal problem. Diane L. Gruber has been practicing law in Oregon for 26 years, specializing in family law, bankruptcy, estate planning and probate. Note: Diane L. Gruber does not represent you until a written fee agreement has been signed by you and Diane L. Gruber, and the fee listed in the agreement has been paid.
File notice of stay in the Stay court, so that State court record of your filing chapter 7 relief. If you have indicated your intentio to surrender, make sure to surrrender the properety within 45 days of filing chapter 7. Once the property s surrendered, creditor has no other remedy. Creditor cannot recover any thing more than secured property/item. Upon discharge of the debt, state court action is moot.
Madhu Kalra Kalra Law Firm 23720 Arlington Avenue, Ste 5 Torrance, Ca 90501 (310) 325-9012
Criminal Defense Attorney
I agree with Mr. Walton. There should be no action, judicial or non-judicial,
Taken to collect a debt or recover the property during your Chapter 7, unless the Bankruptcy court grants relief from
The automatic stay. The creditor can proceed
Against the property after discharge but cannot ask you for money. Hope this helps.