Q: i loaned a friend? $5,000 so he could bye a vehicle. he filed for bankruptsy and now says he no longer owes me

A: Unless you took a security interest in the debtor's real or personal property at the time you advanced the money, and "perfected" your lien by filing in the designated places (Registrar of deeds in county where real property is located, or Sec. of State of PA and/or county for UCC-1 filings), then your loan is most probably subject to discharge in the bankruptcy.

There are exceptions to discharge, listed in Section 523 of the bankruptcy code, e.g., if the debtor procured the loan by fraud, etc. If you loaned the money within 90 days of the bankruptcy filing, you may also have a nondischargeable claim. There are other exceptions to discharge, listed in Section 523.

A: Unless you retained a security interest in the vehicle as collateral for the $5,000 loan, the debt will likely be discharged in bankruptcy.

A: This is true. I’m sorry. He’s a dick! But having filed bcy clears his debt with you. Make sure of 2 things having to do with his bcy:

1. Make sure that he properly listed you on his Schedule D - Unsecured Creditors. From your question it seemed like he was the one that informed you of his bcy? The Clerk has a Matrix if creditors and their addresses. If you were not included and didn’t actually get notice of his bcy, then wait till he gets his discharge and the court closes his estate before suing him, but sue him!

2. Make sure that YOU file a “Proof of Claim,” so that you can participate in his “payout.” Bankruptcy law now requires that he prove that he is unable to pay back even 30% of his “unsecured debts” of which you are now one. If he WAS able to pay back 30% then you will receive a monthly check from his Trustee. Good luck!