Legal Question in Bankruptcy in California

I am in Ca, In good faith I lent someone $1,000.00 verbal loan, actuallly put the money in her checking account. She was getting an accident settlement check the following week and would pay me back. (Her landlord was going to start eviction proeedings if they did not pay the rent that day. i had lent her money before and she had always been good for it. Today I receive a chapter 13 bankruptcy notice. They live in a small town 12 hours away from me.Can I still file a small claims action? show I appear at court on the 15th ane contest it. My problem is since I lent her the money (2.4 years) I hav become diabled with parkinsons disease, and can't really afford to throw away the $1,000 and it won't help my curent tax situation as I write off. secondly she is now a real estate agent, if I can go to small claims and jet a judgement can I p ut a lien on any listings she has?


Asked on 4/02/10, 9:12 pm

1 Answer from Attorneys
Michael Stone Law Offices of Michael B. Stone Toll Free 1-855-USE-MIKE

Now that you know she is bankrupt you MUST NOT sue her or do anything at all to attempt to collect the debt, or you will be in trouble big time. You MUST file a claim with the bankruptcy court. If you are able to attend the meeting of creditors, you may attend and she will have to answer your questions under oath. You may be out of luck. Hope this teaches you not to make verbal loans, or any loans. If they can't get credit from the bank, that means they've burned the banks before, and guess what, you're next! If her Chapter 13 is dismissed, and most eventually are within a few months, you will be free to take her to court again.

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Answered on 4/07/10, 9:45 pm


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