Should I sue my friend and file bankruptcy? 2 Answers as of November 22, 2010

I stupidly lent him my credit to buy a house. He was supposed to put it in his name 6 months later but never did. In fact he lost his job and could not make payments anymore. The house went into foreclosure but he took out equity so I still owe 135k for the second home equity line. We tried to do a short sale and because it was also an income property he collected $12,000 in rent money from my property and spent it. I am willing to file bankruptcy so not to owe the 135k anymore and found a great lawyer who will do it for $2500. He went bankrupt himself and said he wants to use his lawyer who is only $1500 and he will pay for it. Should I sue him in small claims court for the max I can get ($7,500) so I can use the lawyer I trust or should I just agree to go with his lawyer that he will pay

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Maclean Chung Law Firm
Maclean Chung Law Firm | David H. Chung
You should meet with his attorney and have a consultation. If your friend is willing to pay for the bankruptcy you should at least explore it. The problem with suing him is that your claim arose before he filed for bankruptcy, so technically it may be covered by his bankruptcy. But you should have an in depth consultation with your new bankruptcy attorney on the issue.
Answer Applies to: California
Replied: 11/22/2010
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