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  1. #1
    Join Date
    Aug 2008
    Posts
    6

    Default 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"?

  2. #2
    Join Date
    Sep 2005
    Location
    Behind a Desk
    Posts
    98,846

    Default 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?

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