What Happens With an Uncollectable Loan to a Family Member When Filing Bankruptcy
in Michigan..I am curious about a loan that I made to a family member in 2006. I lent her the money and have received some repayment over the past 3 yrs. But will never see the majority of it. Based on the exemptions I am allowed, the amount exceeds that by $10,000. Will the Trustee try and make me pay that? I cannot pay anything because I am broke. And my sister is flat busted as well. Or is it possible the Trustee will declare the receivable I am owed "un-collectable"?
Re: I Loaned Money in 2006 and I Am Filing Chapter 7
If the account receivable has no value due to the financial situation of your debtor, then you would describe it (including the balance due) and indicate that it has no present value. There may be some value in the A/R as a tax deduction; it's possible that the trustee or a creditor will question whether it in fact has no value. Do you have a bankruptcy lawyer working on your case?