Legal Question in Bankruptcy in California

California - I loaned money to "friends" and they executed a promissory note. They made payments per the agreed schedule for a while, but then both lost their jobs and they stopped paying. I discovered their house is now in foreclosure and the wife filed for bankruptcy. Is there any way I can protect my promissory note from being discharged in bankruptcy court? Is there anything I can do to ensure that eventaully I would get my money back? Should I file in small claims, in order to obtain a judgment? Thank you.


Asked on 6/22/11, 9:17 am

2 Answer from Attorneys
Todd Mannis Law Offices of Joseph A. Mannis

First, if they both lost their jobs, and their house is in foreclosure, then even if you got a judgment against them, what are you going to collect with it? Sounds like nothing. Factor in the bankruptcy, and even if you did get a judgment, it would be discharged. Moreover, you really can't contest the discharge, because nothing about this sounds fraudulent; they both lost their job, they are losing their house, etc. - those seem like pretty valid reasons for filing a bankruptcy. You mentioned that the husband didn't file, but even so, this is sounding pretty uncollectible from what you are saying. Hate to be the bearer of bad news, but it doesn't sound promising.

Todd Mannis, Esq.

www.mannislaw.com

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Answered on 6/22/11, 9:32 am


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