Can I get my loan back? 2 Answers as of August 19, 2010I used a promissory note to loan money to a family friend. Now they are including it in their bankruptcy even though the note expressly stated that they would not be able to do this. What can I do to stop this? Can I just send a copy of the promissory note to someone involved?
Law Offices of Michael J. Berger | Michael J. Berger
You cannot stop someone that owes you money from listing their debt to you in their bankruptcy case. Language in a promissory note that tries to stop this would probably be unenforceable. If the case is an asset case, you will be asked to file a proof of claim. This may help you to recover part of the money that you loaned to your friend. Just sending a copy of the promissory note to someone involved will not help and will not accomplish anything. If you want to collect, you need to look at the possibility of filing an adversary proceeding against the debtor, either to deny the dischargeability of your debt (11 USC Section 523) or to deny the debtor's discharge (11 USC Section 527). Call me to discuss the specific facts of your matter and I will help you to determine if you have a good case.
Answer Applies to: California