Kingston, PA asked in Bankruptcy for Pennsylvania

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

the money and there is no way for me to get my money back from him. is this true?

Related Topics:
3 Lawyer Answers
W. J. Winterstein Jr.
PREMIUM
W. J. Winterstein Jr.
Answered
  • Bankruptcy Lawyer
  • Boyertown, PA
  • Licensed in Pennsylvania

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.

Bruce Alexander Minnick agrees with this answer

Timothy Denison
Timothy Denison
Answered
  • Bankruptcy Lawyer
  • Louisville, KY

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.

Bruce Alexander Minnick agrees with this answer

Kevin M Rogers
Kevin M Rogers
Answered
  • Bankruptcy Lawyer
  • Boise, ID

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!

Bruce Alexander Minnick agrees with this answer

Justia Ask a Lawyer is a forum for consumers to get answers to basic legal questions. Any information sent through Justia Ask a Lawyer is not secure and is done so on a non-confidential basis only.

The use of this website to ask questions or receive answers does not create an attorney–client relationship between you and Justia, or between you and any attorney who receives your information or responds to your questions, nor is it intended to create such a relationship. Additionally, no responses on this forum constitute legal advice, which must be tailored to the specific circumstances of each case. You should not act upon information provided in Justia Ask a Lawyer without seeking professional counsel from an attorney admitted or authorized to practice in your jurisdiction. Justia assumes no responsibility to any person who relies on information contained on or received through this site and disclaims all liability in respect to such information.

Justia cannot guarantee that the information on this website (including any legal information provided by an attorney through this service) is accurate, complete, or up-to-date. While we intend to make every attempt to keep the information on this site current, the owners of and contributors to this site make no claims, promises or guarantees about the accuracy, completeness or adequacy of the information contained in or linked to from this site.