debt to family and friends

[kathy4530050]

Does anyone know if there is any reason to list family members and friends with your other creditors? I owe 2 family members and 1 friend a total of over $13,000. I wasn't planning on including them because, when this is all over, I am going to pay them back. That being said, is there any reason TO include them? Could it help or hurt my case?

Thanks!

[dingdong]

You have protection from ever being sued by the family members and friend if they ever decide to go that route.

Also, I don't know if there may be some tax benefits to these creditors by you filing and including them, if they include the discharged amount on their taxes as a loss.


Not real sure on the tax issue, but it might be something to look into.


You are supposed to list all of your creditors on your BK petition by law.

[Trixie007]

You can (and should) list them, and then pay them back after you are discharged. You can pay back everyone if you want to.

[DebtEnder]

Well Having just gotten back from the lawyer today for a chapter 7 filing I can say with great vigor, yes include ANYONE you owe money.

I filed chapter 7 today because 3 weeks ago my wife's grandmother filed a civil suit against us for money (27,000) we owe her, in spite of us making payments on it.

I could have fought her on it, and won probably but I was insolvent anyways, been hoping to pick up some extra income but never quite seems to happen. Didn't see the point to drain 1500 bucks to fight her to stay in the same boat I'm in now.(it was a state court filing so pro se in a civil defense not my idea of fun) If I'm going to get a lawyer I'd rather end up better off

So anyways list everyone you can think of that you owe any amount of money to. You can always repay them after the discharge.

I don't think the grandmother will be getting another penny from me

[kathy4530050]

Thanks everyone. Seems like I should list them. I just wanted to make sure it wouldn't hurt them or hurt my case.

[StartingOver08]

Actually, IMO I think the Trustee might raise an eyebrow if someone came in without at least one family and/or friend on the list! Most of us wait a little too long and go to family first

Don't feel bad about it. When you get on your feet, you can pay back your family and friends on a voluntary basis.

[eddiep]

I also borrowed money from my father in law. Originally I wasn't going to list him (out of embarrasment) but we have decided that it is in his best interest to list him. My mother in law is not doing well and is most likely going into a nursing home as it is getting very difficult to care for her at home. I believe that he may need to account for his money at some point and that "gifting" would not be allowed. I believe that if we officiallly account for and discharge the money we owe him he will not be put in a position that he "has" to get the money back from us. Also we do have assets that will be liquidated during chapter 7 and I hope some of the money would go to him. Has anyone been in this situation before and had the bk court pay back a portion of what was owed to a family member?