Persoanl Loan to person in Bankruptcy

[JPM11462]

What is the name of your state? Tennessee

If you make a pesonal loan. EG: $4000 given to an individual by personal check and it said "loan" in the memo portion of check, Can you turn this over to the bankruptcy court as a loan that was not paid back? Is there anything legally that the bankruptcy court can do by this individual receiving a loan and not reporting it to the bankruptcy court? Thanks

[moburkes]

Originally Posted by JPM11462

What is the name of your state? Tennessee

If you make a pesonal loan. EG: $4000 given to an individual by personal check and it said "loan" in the memo portion of check, Can you turn this over to the bankruptcy court as a loan that was not paid back? Is there anything legally that the bankruptcy court can do by this individual receiving a loan and not reporting it to the bankruptcy court? Thanks

Keep all of your posts in one thread.

[HomeGuru]

what a maze**************.

[Gregeney]

Originally Posted by JPM11462

Is there anything legally that the bankruptcy court can do by this individual receiving a loan and not reporting it to the bankruptcy court? Thanks

Yes, you should file a Proof of Claim and if possible, attend the Meeting of Creditors to state your case. Your choice of action will depend on which chapter was filed by the debtor and how far along the case is currently. Other variables will come into play as well.

[JPM11462]

Thanks for the reply. The individual is currently in bankruptcy and in the process of paying on it each month. The individual has been under bankruptcy for about 2 years. I didn't know of the bankruptcy at the time of the personal loan. Now I am trying to collect and I was told that I am in bankruptcy and there is nothing you can do. I checked and the individual in in fact in bankruptcy. I was told that you are suppose to report to Bankruptcy court any loans or assets that you acquire even if they are personal loans. Any additonal info on this is appreciated. thanks

[debtcollector`]

So, essentially, what you mean is you helped a friend, lover, ex or somebody like that out and now you are upset and want to get back at them.

If you loaned money to someone in the middle of bankruptcy, you took your own chances - deal with it.

DC

[JPM11462]

Thanks for the advice....I didn't know it at the time...but you are right. And I may not have a choice but to deal with it....LOL thanks

[Ladynred]

Wait a minute. This 'loan' is a POST-PETITION debt, so all may not be lost. First of all, the person you loaned the money to is NOT allowed to incur ANY new debt, from ANY source, without the permission of the Trustee. Doing so puts them at risk from the Trustee - and maybe that's why this person doesn't want you rocking they boat - they went behind the Trustee's back !

As a post-petition debt, it may indeed be collectible, you need to speak to a bankruptcy attorney yourself and see if you do have any recourse.

[JPM11462]

LADYNRED...you are right on it. Pretty much what I have found out myself so far. The chapter 13 bankruptcy has been dismissed due to NON-Payment. The trustee is going to let me know if it is reinstated and said I could add the loan to it if done so. Also, there is an issue as well because they checked and she did not report it to the trustee when she acquried the loan. Even though the loan is a personal loan, it is still considered a loan. Her making an attempt at first to pay the loan back acknowledges she knew it was considered a loan. Plus, the check had "loan" wrote in the memo section of the check. She signed and deposited the check in her account. Thanks for the info just the same. You are dead on in your thinking. I appreciate that and the help.