Personal Bankruptcy Bankruptcy Question

[MsLady]

I won a judgment/garnishment of wages and the debtor immediately filed Chapter 7. He has no assets to sell to pay this debt, however he is employed. He has no REAL debts, i.e no automobile, no home, etc. to pay monthly (the judgment was because he defaulted on the automobile I co-signed on ((and a couple of other things)) & he resides in the home of his friend) and I believe he filed Chapter 7 primarily to avoid paying the money he owes me.

My question is - if he's employed and has no real debts, how is he able to file bankruptcy? Will he not have to show the Court that he is in debt in order to file Chapter 7? Or is Chapter 7 "allowed" every six or seven years?

Thanks
For The Insight

 

[Michael Wechsler]

How do you know he filed for bankruptcy? Generally, this isn't a great idea unless necessary. 7 years is a long time to have that on your track record...

 

[MsLady]

I know that he filed for bankruptcy because I received papers from his Attorney "Suggestion of Bankruptcy" with my judgment case number on it and papers from Bankruptcy Court "Notice of Chapter 7 Bankkruptcy Case, Meeting of Creditors & Deadlines".

What is meant by "Suggestion of Bankruptcy"? Can a person file bankruptcy just to avoid repaying a judgment or bills if they are able to? If Chapter 7 means he does not have to repay me, should I retain an attorney "to protect my rights" as suggested in the Bankruptcy Court papers. If Chapter 7 means he does not have to repay me - what rights do I have?

Thanks!!

 

[Michael Wechsler]

The debtor cannot file bankruptcy multiple times within a certain time period.

Debts that are typically discharged are rent, utilities, most credit/charge and unsecured loans, many medical/legal bills and those not discharged are taxes, support (child, alimony), student loans and secured debts, damages due to personal injury, debts due to criminal conduct (fraud, larceny, etc.), and punitive damages. If the debts can be discharged, then that is the law. I would still file as a creditor since you do have rights and, in addition, assuming his filing is granted you should receive something (although it will likely not be satisfactory.)