Are personal debts different than debts to corporations in bankruptcy? 5 Answers as of November 08, 2010

I loaned money to a close friend when she was doing poorly. We made up paper work and a payment plan, and I was expecting to get the money back at some point. Now she is filing for chapter 7 bankruptcy, and I wanted to know whether I would ever see that money again. I know most of her debts will be discharged. Will her debt to me be discharged too?

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The Law Office of Mark J. Markus | Mark Markus

No an unsecured debt is an unsecured debt. It does not change depending on what type of entity it is owed to. If it is a dischargeable debt (i.e. not excepted from discharge under 523 of the Bankruptcy Code, such as student loans, certain tax debts, debts incurred by fraud, etc.) then it will be discharged like any other debt.

Answer Applies to: California

Replied: 11/8/2010

Law Offices of Juan Dotson | Juan Dotson

If her obligation is included in the bankruptcy and you are given proper notice, you can kiss that money good-bye. However, there are some ways you can still see your money. This would involve your friends cooperation/willingness to repay you. Contact an attorney for help.

Answer Applies to: California

Replied: 11/8/2010

The Orantes Law Firm | Giovanni Orantes

Yes. Her debt to you should be discharged, too, and you cannot try to collect from her. However, the fact that her debt was discharged doesn't prevent her from paying you out of her own conscience.

Answer Applies to: California

Replied: 11/8/2010