Is this True?

[nervous1]

We're in the shape we're in because of my husband's generosity. If all the friends that he has loaned money to actually paid him back, we would be doing very well.

Funny....where are all these friends now that he needs $$$?

[outofdebt201]

Could you visit the Trustee when she has her meeting with him. And tell the Trustee your requests to get paid back.

[mrskal]

What state is she in? Maybe you can make a claim, or whatever it is called, by telephone? Haha!

[Yellowsnow]

Thanks to you folks and your great tip, I went to PACER and got a copy of her filing.

She lied. She owes me 7K and she listed the debt as 2K DISPUTED. Now I can get the cancelled checks from when I loaned her the money. I can prove she got 7K from me.

Is this enough to get her BK thrown out? Makes no sense she did this. Is there some reason I haven't figured out?

[mrskal]

Good work, I dont know, but i am sure someone here does. Keep us posted!!!

[mrskal]

Oh yah, you should add interest to that too! LOL

[justbroke]

Is this enough to get her BK thrown out? Makes no sense she did this. Is there some reason I haven't figured out?

Not really. If it's unsecured debt, the $$$ amount is irrelevant. Because she says it's disputed and you say it's another value, works in her favor.

[NewDawn]

Does she list her 80k job on the bankruptcy schedules? What state did she file in? What is her household size? Does she have a high mortgage listed? I would at least have an attorney or yourself go down to the 341 and ask her questions.

[Yellowsnow]

She doesn't have any mortgage at all. Or any expensive household stuff either.

A friend of mine who is an attorney(a patent atty, not a BK atty) suggested I should let the bankruptcy go through unimpeded. Then sue the pants off her for the 5K she failed to include in the bankruptcy!!!!!!!! But she also suggested I would have to be able to prove the money wasn't a gift. I do remember the loan was in 2 separate checks. One for 5K and the other for 2K.

Now I have her SSN and I know all her creditors and where she is working.

She filed in Washington state and yes, her job is listed.

[mrskal]

With an 80K income, she must show a lot of debt and expenses to do a 7 right?

[Yellowsnow]

With an 80K income, she must show a lot of debt and expenses to do a 7 right?

Most of it is credit cards, a computer, and a few bad checks. It's about 49K total. No big huge debts but there are several listed with the amounts unknown. I thought most of it was going to be medical, but it's not. She does have a lot of medical expenses listed. One oddball was $300 per month for dental.

Wish I could afford the dental work I need...... Whine whine.

[justbroke]

A friend of mine who is an attorney(a patent atty, not a BK atty) suggested I should let the bankruptcy go through unimpeded. Then sue the pants off her for the 5K she failed to include in the bankruptcy!!!!!!!!

Wrong on the law. You would be in violation of the permanent discharge injunction and will be subject to not only actual but punitive damages.

When an unsecured debt is discharged, you can't just decide to sue the person outside the bankruptcy court for the amount that was not included. If you have a particular amount you want known... file a claim like other creditors. Your claim probably won't be paid, but that would make the amount known.

But she also suggested I would have to be able to prove the money wasn't a gift. I do remember the loan was in 2 separate checks. One for 5K and the other for 2K.

Unless you liened against property, and that was properly recorded on a UCC-1 or title to real or personal property... it's irrelevant. It will be discharged.

Don't be vindictive. Be smart. If you want to see what your options are, hire a bankruptcy attorney. Do not take any advice from non-bankruptcy attorneys.

[NewDawn]

What kind of expenses does she list on Schedule J? I still am having a hard time believing she can qualify for a Chapter 7 with an 80k job, especially with no mortgage. Is her rent payment high? Does she have any kids? Does she have high car payments, medical bills? Basically, what are her expenses? Also, what does her means test show? Did she actually list 80k as her income? Does it show a presumption of abuse or not?

300 for dental expenses? Wow, that is high. I don't know. It just doesn't add up to me. It seems like for an 80k job, she could pay at least some percentage of her 49k debt in a Chapter 13. But you do have to file an objection within 60 days of the 341 meeting. That is a hard deadline.

One last thought....is she an independent contractor that has high business expenses? That might explain some of it.

[tcreegan]

Interesting question here: What if she writes off the debt and sends the form xyz to the IRS before discharge. They get it, call it income, not debt, and it is included in year end tax filing. It just might work.......IRS will go for the option that nets the most tax dollars.

Tom

[tcreegan]

Also: take everything that looks like fraud (known sudden change in income, purchasing luxury items for herself in another person's name, etc) write it out clearly and concisely. Them mail a copy to the bankruptcy/panel trustee, the US Trustee, and the judge on the case. Then go to the 341 meeting and bring these same objections up there as well.