Request To Dismiss

[JCSanDiego]

Good afternoon!

I received a letter from an attorney representing a JDB with a copy of a request to dismiss document that was filed with the local court. It doesn't explain why. I filed chapter 7 two weeks ago, so I'm assuming the creditor was notified and their attorney filed this motion to dismiss my discharge of that debt? It was for a personal loan of $12K. I didn't lie on the application, I made payments for over a year until I lost my job, so everything was in good faith. Is this common? Would there be a reason the debtor would do this? I'm a no-asset case, and furthermore, I never was served a summons. There was a suit filed 5 months ago... but never any service of process. I'm just wondering if there's any reason for this?

I've faxed the documents to my attorney so I'll hear something next week. Just thought I'd reach out and see if anyone has any knowledge or experience with this situation.

Thank you!

[justbroke]

Did they file a motion to dismiss in the local State court? If they did that, then it sounds like they are dismissing the lawsuit because you filed Chapter 7. Had the creditor's attorney filed a motion to dismiss with the bankruptcy court, that's a very different thing. Also, it wouldn't be a motion to dismiss in the bankruptcy court but a complaint to determine dischargeability (a/k/a an adversary proceeding -- AP).

Bottom line, I think that this is just the JDB dismissing their State court lawsuit in light of the suggestion of bankruptcy. They are actually required to not pursue dischargeable or discharged debt. A creditor also can't continue any process to collect on a debt or obtain "property of the bankruptcy estate" (money or physical property). That would be what is known as a stay violation and the creditor could get into serious financial trouble by pursuing dischargeable or discharged debt.

[JCSanDiego]

Looking at the letter it's been filed in the local superior court. My 341 is in a month, so I was wondering if this letter would affect it but I understand now. Thank you for the clarification!