The party I'm suing hasn't filed an answer but sent an email stating they were going through bankruptcy. Is this considered mediation?
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The email from the other party about bankruptcy usually doesn’t count as mediation, especially if it’s just a statement without any negotiation or resolution attempt.
Mediation typically means both sides actively working to settle the dispute with a neutral third party before the court date. The email doesn’t meet that requirement.
Regarding your personal guaranty, that can give you a route to pursue the individual personally, even if the company is in bankruptcy — but it depends on:
- The timing of the bankruptcy filing,
- Whether the guarantor signed in a personal capacity, and
- Whether the bankruptcy covers the same debt.
It’s important to note that once a bankruptcy case is officially filed, an automatic stay immediately takes effect under federal law (11 U.S.C. § 362). That means you can’t pursue collection from the company until the bankruptcy court allows it.
However, if you have a valid personal guaranty, you may still be able to pursue the individual guarantor separately, as long as they personally haven’t filed for bankruptcy too.
As for putting a lien, that would depend on:
- Whether you win a judgment in small claims,
- Whether the debt is dischargeable in bankruptcy, and
- State lien procedures (which vary).
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I'm taking someone to small claims court. They have not filed an answer, but did send an email stating that they were currently going through bankruptcy, and as soon as they could they would pay. Is this considered mediation?
I understand your situation. Have you received any official documentation regarding their bankruptcy filing?
No.
Have you consulted with a lawyer regarding your small claims court case and the impact of the other party's bankruptcy?
No.
Is there anything else the lawyer should know before I connect you? Rest assured they’ll be able to help with your small claims court case.
Yes. Court is saying we need to mediate prior to the court date. Wondering if the email saying they are claiming bankruptcy is considered mediation. I also have a contract with Exhibit A — Personal Guaranty. Wondering if that means I can put a lien on them personally vs. the company that is going through bankruptcy. I have copies of the contract as well as the small claims documents if viewing those would help.
Hello! My name is TJ and I’m an attorney. Thanks so much for the opportunity to assist you! I reviewed what you wrote and I’m about to post my initial answer. While I finalize that, can you please let me know if you’re available for an online chat right now?
The email from the other party about bankruptcy usually doesn’t count as mediation, especially if it’s just a statement without any negotiation or resolution attempt.
Mediation typically means both sides actively working to settle the dispute with a neutral third party before the court date. The email doesn’t meet that requirement.
Regarding your personal guaranty, that can give you a route to pursue the individual personally, even if the company is in bankruptcy — but it depends on:
- The timing of the bankruptcy filing,
- Whether the guarantor signed in a personal capacity, and
- Whether the bankruptcy covers the same debt.
It’s important to note that once a bankruptcy case is officially filed, an automatic stay immediately takes effect under federal law (11 U.S.C. § 362). That means you can’t pursue collection from the company until the bankruptcy court allows it.
However, if you have a valid personal guaranty, you may still be able to pursue the individual guarantor separately, as long as they personally haven’t filed for bankruptcy too.
As for putting a lien, that would depend on:
- Whether you win a judgment in small claims,
- Whether the debt is dischargeable in bankruptcy, and
- State lien procedures (which vary).
