Problem with creditor after discharge

[rsc008s]

I filed bankruptcy and listed my ex-business partner, personally, as a creditor. The bankruptcy has already discharged but now the LLC that I was once a former member of and she still is has filed a small claims action against me. I didn't list the LLC as a creditor on the bankruptcy, but I thought this was covered by listing her. Most of the money I borrowed was issued through the LLC's bank account by way of checks. Can they do this or did my bankruptcy cover it?

[HHM]

Well, you can certainly present the issue to the Small Claims court as a defense to the debt.

However, the LLC is a seperate legal entity, and if the loan is really through the LLC, then you have a problem. Do you have any written agreement regarding this loan?

[rsc008s]

Unfortunately, no we don't but all the checks were disbursed through the LLC notated as loan. Can I add the LLC even though the bankruptcy has been discharged? Didn't she have an obligation to tell that the money wasn't owed to her but to the LLC?

[HHM]

When was your BK discharged? There is a way to reopen a BK, but you should speak to an attorney to see if you can under these circumstances. When is the small claims court date. If I were you, I would show up to small claims court with your Discharge Order and Schedule of creditors and simply argue that the debt was discharged.

However, before you mention the BK in court, try to persuade the judge that your business partner was the creditor and not the LLC (and maybe your business partner will concede the point), then whip out the BK filing. However, if the partner doesn't concede, then simply argue that you made the deal with your partner directly and that by putting her on notice of the BK, the LLC is constructively on notice and the debt is discharged.

However, the first thing you should do is have a consult with a BK attorney and get their advice regarding whether you should attempt to reopen the case to correct your scheduels to add the LLC.

[rsc008s]

Yeah, my discharge was end of March and small claims is beginning of June. I'm not sure that the argument back and forth will work because there is another partner to the LLC. From my understanding now, the money actually came from another LLC that she and the other partner are members to the mutually owned LLC to me. I guess it's not a clear cut either way and will have to argue in small claims to hopefully get out of paying.

[rsc008s]

Even if the LLC technically knows I'm filing for bankruptcy but I didn't claim them does that automatically mean the debt is covered? I thought each individual creditor has to be listed.

[HHM]

Even if the LLC technically knows I'm filing for bankruptcy but I didn't claim them does that automatically mean the debt is covered? I thought each individual creditor has to be listed.

Yes, each creditor needs to be listed, but you did notify a member of the LLC, presumably under the impression that the debt was owed to that person individually, and not the LLC, but since the person is a member of the LLC in question, you can make a good faith argument that the LLC should be considered to have been put on notice.

There is no clear-cut answer to your question, all I am suggesting is you make the case as best you can.