Bankruptcy

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Bankruptcy

I sold a car to someone and they didn’t pay for it. Have been to court and the judge ruled in my favor. It’s been almost a year now and I finally tracked down this guy again and he informs me he’s in the middle of filing bankruptcy. Can I still get my money?

Asked on June 23, 2009 under Bankruptcy Law, North Carolina

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 12 years ago | Contributor

If he actually is in the middle of a bankruptcy filing, probably not: transfers or payments made just before or during a bankruptcy filing are set aside (basically reversed) and the money goes back into the filer's general pool of assets to be divided amongst the creditors. If you can prove you sold him the car--you have a receipt or etc.--you'll be one of those creditors, and you'll probably get *something*, but it won't be the full amount; maybe from $.10 to $.60 or so on the dollar, depending on his finances. You *have* to get in line, so to speak, with the other creditors, so you need to get an attorney who can make sure you properly make the court aware of the debt.

If he's not actually in the middle of filing for bankruptcy, then you can, of course, sue him for the money. The best way to go is to get an attorney and begin proceeding against him: if he's not in bankrupcy, you'll begin the process of getting you money, if he is, you'll at least be able to get in front of the bankruptcy court to get your share.


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