Notices
Like Tree11Likes

A bankruptcy question

Old 05-11-2018, 10:57 AM
  #1  
Senior MemberCaptains Club Member
Thread Starter
 
Garett's Avatar
 
Join Date: Feb 2003
Posts: 24,119
Default A bankruptcy question

I know every jurisdiction is different.......

If someone owes you several hundred thousand dollars and they file bankruptcy does that get them off the hook for the debt?
Does it make a difference if the bankruptcy is filed before the debt is acknowledged by the courts (a civil action against the person owing the money) or after the courts acknowledge the debt?
Garett is offline  
Old 05-11-2018, 11:03 AM
  #2  
Senior Member
 
Join Date: May 2014
Location: Wendell, NC
Posts: 2,142
Default

Who do you owe?

Dillard88 likes this.
NCSUboater is online now  
Old 05-11-2018, 11:09 AM
  #3  
Senior MemberCaptains Club Member
 
Join Date: Dec 2007
Posts: 15,654
Default

A personal loan, or a structured-payment loan all done up in writing and filed with the probate office (or similar, in Canada)?
bamaboy473 is online now  
Old 05-11-2018, 11:09 AM
  #4  
Senior Member
 
Join Date: May 2004
Location: Sarasota Florida
Posts: 335
Default

Originally Posted by NCSUboater View Post
Who do you owe?

I think Garett owes this for his five colonoscopies recently.
Tarpon65 is offline  
Old 05-11-2018, 11:24 AM
  #5  
Senior Member
 
crazybeard's Avatar
 
Join Date: Aug 2013
Location: Tropico
Posts: 5,804
Default

Canadian law? No idea.

US law? Which position are we asking on behalf? Which chapter BK? Does the debt get reaffirmed?
crazybeard is offline  
Old 05-11-2018, 11:34 AM
  #6  
Senior MemberCaptains Club Member
Thread Starter
 
Garett's Avatar
 
Join Date: Feb 2003
Posts: 24,119
Default

The money is owed to me and the person considering bankruptcy is my brother and then it gets way more fked up then that.
Garett is offline  
Old 05-11-2018, 11:40 AM
  #7  
Senior MemberCaptains Club MemberPLEDGER
 
Join Date: Jan 2005
Location: SC
Posts: 10,177
Default

Don't you have a large variety of butcher knives?
autobaun70 is offline  
Old 05-11-2018, 11:57 AM
  #8  
Senior Member
 
Join Date: May 2006
Location: Suffolk, Va.
Posts: 17,015
Default

Take him camping.
fishingfun is offline  
Old 05-11-2018, 12:02 PM
  #9  
Admirals Club Admiral's Club Member
 
Join Date: Dec 2011
Location: Jupiter
Posts: 2,808
Default

Originally Posted by fishingfun View Post
Take him camping.
that didn’t take long. Lol.
Classic25 and Marlin308 like this.
Tainui is offline  
Old 05-11-2018, 12:02 PM
  #10  
Admirals Club Admiral's Club Member
 
Join Date: Nov 2016
Posts: 1,817
Default

From what I have seen bankruptcy does not get all of your debt discharged if you still have an ability to pay some of it back. Its not a magic clean slate for example student loans are no longer allowed to be discharged.
Lorne Greene is offline  
Old 05-11-2018, 12:11 PM
  #11  
Senior Member
 
Join Date: Oct 2009
Location: One bridge south of Clearwater Beach
Posts: 1,042
Default

A brother/family member is viewed different from an institution in the eyes of the bankruptcy court (at least in the US). How was the debt recorded? Was the debt recorded before or after the bankruptcy? In the US, anything recorded after the bankruptcy is a new debt not affected by the bankruptcy. Don't believe me, get a bankruptcy and see how many credit card offerings you get....they know you have already filed bankruptcy, so they are more than ready to let you run a new card up to the limit as they know you can't file again anytime soon. Problem with family debt is them being verified and recorded properly.....debts from an institution are always recorded with the courts if it involves real estate or on your credit if it involves credit cards. auto loans, etc. They will also include some form of truth in lending statement that lays out the interest rate, amount of interest paid if carried to term, etc. If you don't have a signed promissory note with a detailed repayment schedule, interest rate, etc.....you will have a very tough battle ahead of you. If you have all of that, it will then be a matter of how much the debt is, what it was for and if it was secured.
Diverboy is offline  
Old 05-11-2018, 12:16 PM
  #12  
Admirals Club Admiral's Club Member
 
Join Date: Sep 2004
Location: Mechanicsville VA
Posts: 7,876
Default

Typically the government gets EVERYTHING they are owed first.....then secured creditors.......then un-secured creditors. If you have a lien on collateral that collateral might be sold to pay certain debts (see above, you're not first). Often times a primary house won't be forced/sold but a second home easily can be.

The debt acknowledgement? Did you lend him the money so recently that it hasn't been recorded with the state/locality? Were you going to? If you haven't then that might be considered "un-secured" debt.


I'm not in the profession but run a business and have been burnt by companies going bankrupt......get legal advice to confirm/deny my THEORIES!
t500hps is offline  
Old 05-11-2018, 12:19 PM
  #13  
Admirals Club Admiral's Club Member
 
Join Date: Apr 2008
Posts: 991
Default

My understanding is most all unsecured debt gets wiped with a bankruptcy. This applies even if you are not actively trying to collect that debt. All they have to do is list it and unless you can prove fraud, you are SOL.
mitchk is offline  
Old 05-11-2018, 01:38 PM
  #14  
Admirals Club Admiral's Club Member
 
Join Date: May 2009
Location: Mobile, Al.
Posts: 2,216
Default

Originally Posted by Garett View Post
I know every jurisdiction is different.......

If someone owes you several hundred thousand dollars and they file bankruptcy does that get them off the hook for the debt?
Does it make a difference if the bankruptcy is filed before the debt is acknowledged by the courts (a civil action against the person owing the money) or after the courts acknowledge the debt?
I went through this with my ex-wife. She owed me a lot of money and then I had to take her back to court for some other stuff. I was awarded something through that, as well. She then proceeded to file bankruptcy. And yes, they wiped away the debt. Against my objections of course.

To add insult to injury, the IRS would not allow me to write it off as bad debt. They said I did not meet the "legal" definition of creditor. Even though I was listed as a creditor on the bankruptcy papers..

Lost a boat load of money..
macabear is offline  
Old 05-11-2018, 02:35 PM
  #15  
Admirals Club Admiral's Club Member
 
Join Date: Nov 2008
Location: Somewhere in the middle of Michigan
Posts: 10,385
Default

There might be some differences between bankruptcy laws in the USA and Canada...
Marlin308 likes this.
yarcraft91 is online now  
Old 05-11-2018, 03:18 PM
  #16  
Senior MemberCaptains Club Member
 
Join Date: Mar 2001
Location: Louisissippi Coast
Posts: 12,356
Default

You should threaten to talk to him. That should provide sufficient motivation for him to find the money.
Submariner likes this.
Paul Barnard is offline  
Old 05-11-2018, 06:02 PM
  #17  
Admirals Club Admiral's Club Member
 
Join Date: May 2012
Location: Nashville, 'Merica!
Posts: 1,547
Default

Originally Posted by Paul Barnard View Post
You should threaten to talk to him. That should provide sufficient motivation for him to find the money.
Damn that's funny.
chrispnet likes this.
Marlin308 is online now  
Old 05-11-2018, 07:24 PM
  #18  
Admirals Club Admiral's Club Member
 
Join Date: May 2009
Location: Mobile, Al.
Posts: 2,216
Default

Originally Posted by Paul Barnard View Post
You should threaten to talk to him. That should provide sufficient motivation for him to find the money.
Dang dude.. LOL....
macabear is offline  
Old 05-11-2018, 09:15 PM
  #19  
Senior MemberCaptains Club Member
PLEDGER
 
Bruce W's Avatar
 
Join Date: Feb 2001
Location: VA
Posts: 14,973
Default

I think this has something to do with an estate/Will (or no Will)/probate/settlement? Is that correct, Garett? Laws could be TOTALLY different in Canada, so advice from U.S. folks may not be applicable? The best thing to do is talk with an estate lawyer (I know - $'s - but you need GOOD, RELIABLE advice!) and the bankruptcy court as to how to proceed.

I'd start with the court system - often FREE, but accurate advice.

Good luck on this long-standing issue.

Regards,
Bruce W is offline  
Old 05-12-2018, 09:21 AM
  #20  
Senior Member
 
Stand By's Avatar
 
Join Date: Aug 2015
Location: Left Hand First knuckle Middle finger
Posts: 1,757
Default

Shoe him the picture of that old mirror you had to settle with. Maybe he'll throw some cash your way out of sympathy?
Stand By is offline  

Thread Tools
Search this Thread