Are salary advances dishargeable? 3 Answers as of August 22, 2010

Will the debt that I owe to my boss for a salary advance be discharged if I file for bankruptcy?

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Diefer Law Group, P.C.
Diefer Law Group, P.C. | Abel Fernandez
Well, this is a hard one. In essence, it is a loan. So, yes, you can list it and it would be discharged. I would assume this would not please your boss and you would lose your job. I do not think they will fire and give you this as a reason but I am sure this would cause your problems at work.
Answer Applies to: California
Replied: 8/22/2010
Law Offices of Michael J. Berger
Law Offices of Michael J. Berger | Michael J. Berger
Salary advances are generally dischargeable in bankruptcy. Exceptions to discharge are set forth in 11 USC Section 523 of the bankruptcy code, and the exceptions listed therein do not include salary advances. The issue is whether or not these advances might arguably fit in under sections of the code that include obtaining money by fraud or a false representation, or willful and malicious injury to another or the property of another. For specific advice about your matter, please call me.
Answer Applies to: California
Replied: 8/21/2010
The Doan Law Firm
The Doan Law Firm | Shawn Doan
Yes, unless your employer can show the court that you intended to file for bankruptcy at the time you took the advance.
Answer Applies to: California
Replied: 8/20/2010
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