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gundog17

Guest
What is the name of your state? Ohio
I lent a relative money and they filed for bankruptcy. Since they listed me, I thought that it was an admission on their part. I guess not though. The trustee is asking for it to be disallowed since there was no contract. I need to file forms to offset his request. Can I do this myself and can anyone guide me to where I might get the forms? While I know that the money is gone, I'd like to at least recover some of it as a loss on my taxes.
 


HomeGuru

Senior Member
gundog17 said:
What is the name of your state? Ohio
I lent a relative money and they filed for bankruptcy. Since they listed me, I thought that it was an admission on their part. I guess not though. The trustee is asking for it to be disallowed since there was no contract. I need to file forms to offset his request. Can I do this myself and can anyone guide me to where I might get the forms? While I know that the money is gone, I'd like to at least recover some of it as a loss on my taxes.
**A: how much did you loan and was it a BK 7 or 13?
 
A

anadude

Guest
if it's a chp 7, you're very likely wasting your time (you're sol).

if it's a chp 13, you may be wasting your time also (generally not going to get much back), just depends on the repayment plan.

good luck
 
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gundog17

Guest
I lent her $12K and it was chapter 7. I have written off recovering any of this money from her. I'm just looking for it to be allowed so that I can legally claim it as a loss on my taxes. After all, 28% back is better than nothing.
 

Ladynred

Senior Member
What exactly do you mean when you say the trustee wants it 'disallowed' ?? Did she claim it as a secured debt ? Or is the Trustee saying she can't claim it as a debt at all (which makes little sense) ??
 
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gundog17

Guest
This is why I am confused. The debt was an unsecured personal loan to my ex-sister. She paid on it until my mother died and then ammended her bankruptcy to include me. I got notified last January about this. I get an acknowledgement form to send in, which I do. On 12/23, I get a letter from the trustee saying that there are 'no supporting documents of this debt' and he requests to the bankruptcy judge that my claim be disallowed. My confusion is how can my ex-sister volounteer the debt to me and then the trustee turn around and say that there are doubts about its legitimacy? I have since received another letter from the court saying that I need to appear before them regarding this. I have another sister who is ill (cannot travel) and lives out of state who is aware of the loan. Is there anything she can do to help? Will a simple letter to the courts be allowed? Any clue as to what's up? Can I be in trouble here? Is a lawyer advised here?
 

HomeGuru

Senior Member
gundog17 said:
This is why I am confused. The debt was an unsecured personal loan to my ex-sister. She paid on it until my mother died and then ammended her bankruptcy to include me. I got notified last January about this. I get an acknowledgement form to send in, which I do. On 12/23, I get a letter from the trustee saying that there are 'no supporting documents of this debt' and he requests to the bankruptcy judge that my claim be disallowed. My confusion is how can my ex-sister volounteer the debt to me and then the trustee turn around and say that there are doubts about its legitimacy? I have since received another letter from the court saying that I need to appear before them regarding this. I have another sister who is ill (cannot travel) and lives out of state who is aware of the loan. Is there anything she can do to help? Will a simple letter to the courts be allowed? Any clue as to what's up? Can I be in trouble here? Is a lawyer advised here?
**A: did you read my post?
 

Ladynred

Senior Member
Ok.. so it sounds like she included you as a creditor and you filed a proof of claim or objection to her getting this debt discharged.

As HG said, its an unsecured debt. You had nothing in writing of any kind to prove the loan or its repayment to you. You haven't any kind of lien or security for this loan so, basically, you haven't a leg to stand on. You can try to get an affidavit from your other sister as to the existence of the debt, but its unlikely this will do you any good and your claim is going to be denied - the debt will be discharged.
 

HomeGuru

Senior Member
gundog17 said:
I lent her $12K and it was chapter 7. I have written off recovering any of this money from her. I'm just looking for it to be allowed so that I can legally claim it as a loss on my taxes. After all, 28% back is better than nothing.
**A: you have a tax issue more than a BK issue. Post this in the Tax Law forum.
 
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gundog17

Guest
I guess that I may be a bit confused as to legal meanings here. I appreciate all of the advice, and I'll also post on the tax site.

I understand that the money is gone and that I'll never see any of it from my ex-sister. What I'm confused about is how can she list me as a creditor (isn't this an admission on her part) and then the trustee question the legitimacy of this? Is it normal for people to make up creditors who they don't really owe money to? I'm really wondering how he can question her confession.
 
T

tommy 522

Guest
loan money to sister

you need to go to www.lawguru.com and post on their a real attorney will answer your question noy one of us dum dum"s with
no know how if we were so smart we wouldnt be here!
Some of the answers on here will scare you! and some of the rude people on here think their so much smarter than any one else it:s a shame!
It must be a lonley life when one thinks he or she is the only one right all the time, when they put some of us down for not soelling correct or know how to type correct but if they were all so dam smart they would nt be on here, putting down people's questions and spelling.
 

Ladynred

Senior Member
Gundog, you're taking a moralistic approach to your ex-SIL's bankruptcy filing. Her adding you as a creditor is not an admission of 'guilt', its a statement of her financial affairs. She owes you money and she included you as a creditor - period. You, apparently, filed an objection to her having this debt discharged, but you have nothing in writing to prove to the Trustee that you have any kind of lien as security for repayment and nothing to prove repayment is even required, to substantiate your claim that her debt to you should not be discharged.

As for 'making up creditors', by signing the forms you are swearing that everything in them is true. In a 341 meeting with the Trustee, you are sworn in. If you fabricate anything, you risk dismisal for fraud. Bankruptcy law allows for something called 'contingengy debts' - a debt that you MAY owe at some point in time. Those debts are STILL discharged. If you're a co-signer for someone, YOU can add that as a contingency debt because you would only be liable if the primary defaulted - and there's no way to know if that would ever happen. The bankruptcy therefore discharges you of any liability for that debt in the event that the primary does default at some future date.

It may not sound fair, but it is the law. Its what allows us to get the fresh start that bankruptcy was intended for, to free you of ALL debts you incurred prior to the day you filed.
 

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