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You loaned someone money and they filed Bankruptcy: What can you do?
You got an unpleasant surprise in the mail. You loaned a sizable amount of money to someone and they just filed bankruptcy.
In most case, this would mean you won’t be able to collect. But, if there anything you can do to challenge it?
Yes, if the debt is “non-dischargeable”. This means they cannot be wiped out by a bankruptcy. There are many ways a debt can be non-dischargeable. One way is a debt obtained through fraud, theft , or other intentional wrong-doing. If you believe the debt falls within one of these categories, you can file an “adversary proceeding”. This is where you request the bankruptcy court not allow the debtor to get out of his obligation to you.
If you would like to talk to an experienced attorney about this, click below to schedule a free consultation.