Personal Debt Collection

[mbrandon]

What is the name of your state? California

I am hoping someone can help me with some information, or at least point me in the right direction. I am not sure I am even posting to the right category. The story is as follows:

My boss lended an acquaintance a sum of money to help start a business. Contracts were signed. Time has passed, and this individual has since filed for bankruptcy. Not one payment has been made. This is a personal debt, so we are unsure whether or not the bankruptcy affects us. I need to know what our options are with respect to collection. The amount is too large for small claims litigation, and my boss doesn't necessarily want to sue. Can a collection agency be brought into this situation? Can you report a default on a personal loan to credit agencies?

As much information as anyone can offer would be greatly appreciated.

Thx.What is the name of your state?

 

[bigun]

If the debt was included in the bk and the bk has been discharged, you're out of luck. Any attempt to collect would vilolate the permanent injunction that protects a petitioner from further collection. Your boss could well end up facing sanctions from a bk court judge.

 

[mbrandon]

Okay. I just found out that the debt was not included in the bankruptcy. Now what are our options?

 

[bigun]

Your options are still not good. Ca. is inthe 9th circuit. That circuit has ruled that in a no asset Chapter 7, even if a debt were not included it is considered discharged anyway.
I'm assuming that your eference to personal debt in the first post that this is a Chapter 7 consumer bk.

 

[TigerD]

Contact an attorney and fight the bankruptcy.

 

[LAWYER-003]

Contact an attorney and fight the bankruptcy.

My response:

And how would you propose that our writer do that? What grounds?

IAAL