Personal loan rights in case of bankruptcy
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Personal loan rights in case of bankruptcy
What happens to a personal loan if the owner goes bankrupt?
Asked on June 19, 2009 under Bankruptcy Law, Oregon
Answers:
B. B., Member, New Jersey Bar / FreeAdvice Contributing Attorney
Answered 14 years ago | Contributor
If it's the person who owes the money who goes bankrupt, that person would have to list the personal loan, like any other debt, or it would not be discharged by the bankruptcy.
If it's the person who made the loan who goes bankrupt, that loan probably has to be disclosed. Certainly, not disclosing the loan, and then collecting on it after the bankruptcy was over, could be seen as a fraud on the creditors and on the court.
This is something that needs to be discussed with a bankruptcy lawyer as soon as possible, if it is part of your case. One place to find an attorney is our website: http://attorneypages.com
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