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Asked 12/13/2010

I lent brother money over a 2 year period until recently. He's now filing chapter 7 bankruptcy and trying to wipe his debt of me. How can I fight to retrieve my money from him and excluded from his obligation to pay me

I lent my brother money over a 2 year time frame until recently. He's now filing chapter 7 bankruptcy. How can I fight to be excluded from his debt wipeout

 
 
 
 
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Answer 1/3 - Submitted 12/13/2010

Hi, Luvbegls, and welcome to WebAnswers.

Unfortunately, your brother's debt to you is no different than any other unsecured creditor of his, all of whom have to stand in line behind his other debts, although those debts might not get anything either, especially if there are no real assets.

I'm sorry, but this is what Chapter 7 is, a complete "wipeout" of his debts, unless the court denies his petition, which is rare.

I hope this clarifies the matter for you. Thank you for choosing WebAnswers as your sourceā„¢.

 
 

Answer 2/3 - Submitted 12/14/2010

Stop lending your brother money, if he has you listed as a creditor in his bankruptcy. Family debts should be handled outside the court system, but if he wants it to be official, then don't be his banker.

Perhaps you'll get lucky and he'll pay you back some day. Don't count on it though, some people live a long time without ever being successful with money.

 
 

Answer 3/3 - Submitted 12/14/2010

The debt will be discharged. You really can't do much. If it is an asset case, then you can file a proof of claim to get a share of the assets. However, most cases are no asset cases. In a no asset case you will get nothing. You might want to check with an attorney in your state.

 
 
 
 
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