Filing for bankruptcy before paying a loan

[adcjones]

I had a loaned a friend $3000 from my school refund check in his time of need. He had been paying me $20 a week for a few months but has since lost his job and is moving out of state. He has not paid the past 2 weeks and although he says he will continue to pay, I have been told by others that he says he is going to file bankruptcy in order to not have to pay me back.

He currently owns a downtrodden vehicle and is buying a house here, but is in the process of selling it. It is doubtful he will get what the mortgage is for, and i am sure he has no other assets.

Am I basically screwed? Can you put personal loans such as this on bankruptcy? I myself owe money on my school loans and have a credit card with almost $2000 on it. Is it this easy to not pay off loans? I plan on repaying my loans, but if it is as easy as 1-2-3 to be rid of debt, what's to say everyone won't pay off loans?

I would gladly work out a payment plan that would be better suited to him, but $20 a week is still pretty cheap and from what I have gathered I don't believe he plans on paying me. And him being in Tennessee makes it much more difficult for me to stay in touch.

Any advice?

[justbroke]

Am I basically screwed? Can you put personal loans such as this on bankruptcy? I myself owe money on my school loans and have a credit card with almost $2000 on it. Is it this easy to not pay off loans? I plan on repaying my loans, but if it is as easy as 1-2-3 to be rid of debt, what's to say everyone won't pay off loans?

Yes, you have no recourse. You could sue him, quickly, get a judgment and record it against some property. Otherwise, you do not have a secured loan, so his filing Bankruptcy (Chapter 7 especially) would discharge that debt and he wouldn't owe it to you anymore.

Advice? None really. This is the business of lending to friends and family. I have $43,393.98 in outstanding debt owed to me from family and friends. I've written it all off.

[AngelinaCatHub]

Yes, you have no recourse. You could sue him, quickly, get a judgment and record it against some property. Otherwise, you do not have a secured loan, so his filing Bankruptcy (Chapter 7 especially) would discharge that debt and he wouldn't owe it to you anymore.

Advice? None really. This is the business of lending to friends and family. I have $43,393.98 in outstanding debt owed to me from family and friends. I've written it all off.

OMG 43+K? Astounding. I was about to say, bk for 3K? What a fool. Screw a friend? What a damned fool. Anyway, he needs to write it off as just to file in small claims is good money after bad. When I had money I small claimed against $53 bucks. Got a Judgment. What good is it? 'Hub

[justbroke]

When I had money I small claimed against $53 bucks. Got a Judgment. What good is it? 'Hub

I bet you felt good though!