Teeny, Tiny, Microscopic loan from a friend

[simon2020]

.

I owe a friend like $500.00. He's a really good friend over the years. No contract just hand shake. I don't want him on the petition. He said just pay him whatever during my chap. 13 plan. He said even if I just paid him $10 here and there that would be cool. By the way, no interest.

I will have extra cash after paying the trustee for food and stuff. If I went to the ATM and took out $20 and gave it to my friend to satisfy our handshake loan, how will the trustee know about that? Will ask for every ATM receipt in a year and scrutinize every dollar I took out?

Please advise.

Thank you.















.

[krielly]

My advice is to list your friend in your BK petition. This way, he will at least be partially paid through your plan at whatever percentage of payout to unsecureds is (providing he files a claim).

Remember, there is no law that says you can't pay him back after your BK. Truth is, you probably could do the $20 here and there thing DURING your BK, and no one would ever know (but I wouldn't advise this).

Point being, it's better to keep things out in the open when you file, rather than risking the truth coming out.

Simply talk to your friend about it in advance. Let him know that you plan to include him in your BK, but that it's just a formality, and you have every intention of paying him back in fulll.

You might as well ensure that some of the $ you are paying to unsecureds goes to him along with your other unsecureds, then if you wish to pay him back, you only have to pay him back the difference.

Just my opinion!!!!!!!

K

[simon2020]

krielly My advice is to list your friend in your BK petition. This way, he will at least be partially paid through your plan at whatever percentage of payout to unsecureds is (providing he files a claim).

Remember, there is no law that says you can't pay him back after your BK. Truth is, you probably could do the $20 here and there thing DURING your BK, and no one would ever know (but I wouldn't advise this).

Point being, it's better to keep things out in the open when you file, rather than risking the truth coming out.

Simply talk to your friend about it in advance. Let him know that you plan to include him in your BK, but that it's just a formality, and you have every intention of paying him back in fulll.

You might as well ensure that some of the $ you are paying to unsecureds goes to him along with your other unsecureds, then if you wish to pay him back, you only have to pay him back the difference.

OK - just for argument sakes and yes, I know, I know, list everybody, etc.

Let's say someone owes a friend/relative $50.00. That amount needs to be listed too??? At this point, it almost seems anal especially if the $50.00 would be paid back on the next paycheck.

[simon2020]

If my friend or for any other creditor who does NOT file within the given time period, does that mean my friend/creditor would not be entitled to being paid in the plan? I was just curious, but what percentage of creditors do not respond with a filing after I put in my chap. 13 paperwork with the courts?

One more -- if my friend is on the petition, does that mean he gets a copy of all my other debts listed or will he just get served a bunch of papers from the BK court indicating he is listed as a creditor and that's it?? I mean, I love my friend and I am grateful for the small loan he gave me, but the last thing I want is for me to spread my dirty "debt" laundry in his mailbox.

[krielly]

Yes, if any creditor fails to file a petition,they do not get paid. There really isn't any "percentage" of creditors who file. Most do, some don't. There doesn't seem to be any rhyme or reason to this, except maybe that if the amount you owe them is small enough, they may not bother. You shouldn't bank on anyone NOT filing. If they don't, and you are in a 100% plan, that's just a bonus.

Your friend will just be notified that you filed, along with all of the other creditors. He will not get any itemized listing of all of your debt amounts and every detail of your plan.

[fltoo]

I would not list him. The amount is nominal. Pay him 20 bucks at a time when you can. He seems to be fine with it.

[MajorMike]

I wouldnt list him either....

[ansky0007]

I agree, Dont bother to list him... When you go food shopping take a $20 out as cash back on your debit and no one will know you even took cash out of the bank.

[EricaCallaha]

If he already knows about your bankruptcy, then list him. He may as well get money through your plan. It knocks down what everyone else gets. Then pay him additional monies here and there when you can afford it.

If you were only talking about 50 bucks then I would say don't bother. But $500 is still a chunk of change. I would list.

[kornellred]

If your friend is OK with things as they are, then don't list the debt. Unless you signed a legal document, there is no way to prove the debt exists anyway.

And trustees do not (and cannot) examine your spending habits during a Chapter 13. All they care about is you getting your payment in on time.

[krielly]

I have to respond to the numerous posts here advising you not list your friend. I don't think it's responsible for others to suggest NOT listing him in your BK. What you guys are encouraging is against the law, and not really appropriate on this forum.

K