I'm told the courts can take back any loans repaid to family or friends within 2 years of bankruptcy filing. My Aunt says it's too bad the courts took this money but she says all her debts are forgiven in the bankruptcy and will not repay the money- I'm out-$20,000. Does anyone have any suggestions on how to get this money back? Beware this bankruptcy rip off.
2007-01-05 12:12:44 · 8 answers · asked by njohn 1 in Business & Finance ➔ Credit
The courts do this with non-family transactions too, though the time limit is different. In this kind of "preference action" the court will take back money that may have been paid in anticipation of bankruptcy, b/c in a bankruptcy situation the creditors each may only be entitled to a % of what they are owed, and the court won't allow a creditor to get more than they would have in a bankruptcy settlement.
You should get a copy of the bankruptcy filing from the court and make sure you were listed in the papers as a creditor. If she didn't list you- then your debt wasn't discharged. That said, if she has no money you can't get blood from a stone, but you should take legal action to make sure a judgement is entered against her so if she aquires property in the future you can take it.
2007-01-05 12:23:37 · answer #1 · answered by Anonymous · 0⤊ 0⤋
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RE Aunt paid back loan, filed bankruptcy & courts took the $ back. I'm out $ & Aunt won't pay-can I make her?
I'm told the courts can take back any loans repaid to family or friends within 2 years of bankruptcy filing. My Aunt says it's too bad the courts took this money but she says all her debts are forgiven in the bankruptcy and will not repay the money- I'm out-$20,000. Does anyone have any suggestions on how to get this money back? Beware this bankruptcy rip off.
2014-10-02 06:25:18 · answer #2 · answered by Anonymous · 0⤊ 0⤋
If the court is reclaiming the funds, you have a court order stating she CAN'T pay you back, at least not until she settles the bankruptcy. At that point, she won't has $20,000 to pay you with. If you can document the loan, you can claim a 'bad debt' loss on your income taxes.
2007-01-05 12:19:09 · answer #3 · answered by STEVEN F 7 · 1⤊ 0⤋
I'm sorry to say you're out of luck. The court is correct to claim that money back from you under the law. All you get is the same cents on the dollar payout as all her other unsecured creditors unless you have documentation that shows she secured the loan on some of her assets, whatever they may be. The court has cancelled all her debts so she never has to pay you back.
2007-01-05 12:26:03 · answer #4 · answered by Roger K 3 · 0⤊ 0⤋
the only way to know what your options are legally is to talk to an attorney that specializes in bankruptcies. they will advise you on what she's obligated to pay and to who. good luck and i hope all goes well for you!
2007-01-05 12:22:19 · answer #5 · answered by jdchick48 3 · 0⤊ 0⤋
Well is your aunts life worth $20,000, if not, go watch a Chuck Norris movie. You'll know what to do.
2007-01-05 12:18:29 · answer #6 · answered by Zewp 1 · 1⤊ 0⤋
That doesn't make sense. Courts don't have that kind of authority.
2007-01-05 12:36:05 · answer #7 · answered by The Scorpion 6 · 0⤊ 1⤋
does not sound right...ask attorney..
2007-01-05 12:16:02 · answer #8 · answered by cork 7 · 0⤊ 0⤋