Creditor filed Civil Action after filing

[csonly]

I'm reposting this as I had no responses to this question in my other post. A creditor who never got my notice of bankruptcy from the court filed a civil suit against me. They didn't get the notice because it was not labeled for their specific department in a hospital (a credit union), so basically they never got the mailed notice. In the meantime, they filed this civil action and of course, there is a fee for the filing. Will I be responsible to pay that courts costs, etc.? Even though this looks to be a mistake by the court clerk.

[Charlie777]

Not getting the notice, especially if the address was correct but not properly handled at the mailinmg address doesn't invalidate your filing or counteract the bankruptcy stay. You don't say where you are in the process - BK7 or BK13? Have you had the 341, been discharged?

[csonly]

Charlie777, chapter 7, 341 meeting scheduled Jan 5, 2011. My attorney said he would take care of it, but as an afterthought, I didn't know if I would be responsible for the legal feels involved. In addition to this, my mortgage company filed a motion for automatic stay to be lifted because I was 44 days late for my payment, and that was granted but in the meantime, I'm stuck with another $850 of fees due to that. My attorney did tell me to keep my mortgage payment current, but it came down to retaining him, filing or paying my mortgage that month and postpone the BK filing. I was stuck between a rock and a hard place and did what I needed to do to get things moving in the right direction for my family. I guess I'll never understand why people you owe money to just dig you deeper, knowing that you are having financial trouble. I have never avoided any of my creditors, have been honest and up front with them every step of the way. I used to feel honesty is the best policy but I'm beginning to believe that these days.

[Charlie777]

I understand your problem, I was fortunate that my BK7 went smoothly.

All that should be necessary is for your lawyer to send the lawyer who filed a copy of the notice. The suit is barred by the Temporary Stay, and they have time to attend the 341 so lose nothing. But they MUST withdraw the lawsuit or risk sanctions from the BK court.

[tobee43]

csonly....i did think i saw a response to this...but then again i'm a bit lost....

if you did list it you MUST call the atty that handled your bk and have them take care of the situation immediately for you.

also...the creditor is in fact in violation of the law if the debt was in discharged on your petition.....

you can handle this a few ways....but the easiest is to call the atty that handled your bk....have them take care of it.

again, you stated you listed it, but the MAIL room of the hospital did not deliver it properly....as long as they were listed you should be fine.

[csonly]

I haven't been discharged yet, 341 meeting in January. I did notify my attorney and faxed the creditor the notice of the creditors meeting. I'm guessing they will add the fees onto the amount that I owe them.

[tcreegan]

Hi csonly,

They can add on all the legal fees they want, they get the BK notice, they have to withdraw the suit, you get discharged. The more fees they add on might be the higher amount they can charge off; lower earning, taxes, something.

...never understand why people you owe money to just dig you deeper, knowing that you are having financial trouble. I have never avoided any of my creditors, have been honest and up front with them every step of the way. I used to feel honesty is the best policy but I'm beginning to believe that these days.

The day where your banker was your neighbor and you sealed a deal by shaking hands is long since gone...these days it is profit/loss, risk benefit analysis, and megaconglomocorps where cubicle dwellers follow a set script even when they know they are cramming a square peg in a round hole.

Maybe I am too cynical but incompetence in the financial sector no longer amazes me...

Tom in Colo

[mb10240]

I'm reposting this as I had no responses to this question in my other post. A creditor who never got my notice of bankruptcy from the court filed a civil suit against me. They didn't get the notice because it was not labeled for their specific department in a hospital (a credit union), so basically they never got the mailed notice. In the meantime, they filed this civil action and of course, there is a fee for the filing. Will I be responsible to pay that courts costs, etc.? Even though this looks to be a mistake by the court clerk.

You're not going to be on the hook for the legal fees. What will likely happen is that your attorney will file a "Suggestion of Bankruptcy" (or other equivalent document in your jurisdiction) with the local court. When you receive your discharge, the case should be dismissed. If a case is dismissed, generally no fees are assessed to anybody and the plaintiff is out his filing fee.

As long as you put the last address you received correspondence from the Creditor from on your creditor matrix, you're fine, and if the trustee finds you to be a "no asset" case, you're better than fine. It's not your fault the creditor's delivery system stinks!