#PersonalFinance #Bankruptcy #LoanRepayment
Hey everyone! I need some advice on a tricky situation involving my father and mother. 🤔 Here’s the deal: my father is filing for bankruptcy and claiming that he no longer has to pay back the $20k+ loan my mom gave him during their marriage, despite the signed contract between them. Can he really get away with not paying her back? Is there anything we can do to make sure she gets her money back? Any suggestions would be greatly appreciated! Thanks in advance. 🙏💰
Possible Solutions:
– Consult with a legal professional to understand your options and rights
– Review the terms of the loan agreement for any clauses regarding bankruptcy
– Consider mediation or arbitration to resolve the issue amicably with both parties involved
In many instances, that’s exactly what bankruptcy is. It’s wiping away the debts. Wouldn’t be much use if it wasn’t. But there can be exceptions, and location matters, as does what type of bankruptcy it is… do you know the kind?
What bankruptcy means is he is putting her loan on the table along with all his other debts and assets. There will be a repayment plan. You mother should be notified as a creditor. And she will have the right to part of the assets and repayment plans. He won’t walk away owning no one anything and keeping all he had. He will have to make some payments and some things may be sold. Your mother needs to stay on top of this. She needs to go to court and seek her share of the repayment plan. She won’t see it all, probably very little. But she should get something. I’m sorry, but yes, your dad is partly right, he is not required to repay it all once he’s filed bankruptcy.
Are they currently married? Do they own joint property or joint bank accounts? Joint debts?
Yes, your mom should file a proof of claim. She may get nothing but may be able to write off the debt if it is discharged in bankruptcy. She should speak with a tax professional.
If they are married and have joint property and accounts, she should consult an attorney because she may become solely responsible for joint debts, and any assets in joint accounts may be used by the bankruptcy trustee to pay back creditors. This varies by state and circumstance.
I filed bankruptcy not too long ago,all my creditors got shit, didn’t have to pay zero.
One of them thought they were going to just call on the day of bankruptcy,that’s not what happens,you should tell your mother,if she wants to collect any of her debts,she’ll have to get a lawyer and as soon as your dad files bankruptcy,her lawyer needs to file loan money,don’t wait until the bankruptcy hearing,that’s too late,at least it was with me,judge said everyone had ample time before the day of the hearing.Good luck.
I went threw bankruptcy and the first thing the lawyer said is you can absolutely not pay off any loan even if it’s to your parents or friends it has to be addressed by the court or it can trigger something if other debtors found out.
NAL
Check out the divorce decree (or check with divorce attorney). If the debt was in the divorce settlement, it may impact this.
It depends on the contract and if there was collateral on the line. If it’s unsecured with only a contract then she might see very little pay. It also depends on the class of BK. Is it a CH13? If it is then there is a plan and that should dictate how much each class of creditor gets, secured or unsecured. For unsecured creditors there is a chance your father might pay anywhere between 100% or 25% or 5% back to them, it really depends on what the court ruled he might be capable of paying back. Stay on it. Have your mother file a claim, include all the media that will support the claim and get ready for your father to object because he sounds like that kind of individual. This ain’t legal advice.
Must see a lawyer. A simple note would be dischargeable, but an obligation deemed a support obligation would not be.
I DECLARE BANKRUPTCY
The answer is “possibly” she can object, but if it’s Chapter 7, which it prob will be… yes, he can walk away from it.