Legal Question in Bankruptcy in California

Dischargable items in personal bankruptcy

Can I get this debt discharged in a Chapter 7 personal bankruptcy?? I made purchases

at a jewelry store using one of the store's payment contracts that is with a creditor called Jewelers National Bank. I believe the debt is considered secured by the jewelry. The jewlwry was given away as a gift so I cannot return it under the option of surrendering the asset. What can I do????

Thanks


Asked on 4/28/99, 1:14 pm

1 Answer from Attorneys
Mark Markus Law Office of Mark J. Markus

Re: Dischargable items in personal bankruptcy

This is a good question and one to which, I'm afraid, there is not a definite answer. Basically, the way I've seen it work, is you list the debt in your bankruptcy papers, and tell the creditor that you gave the jewelry away as a gift and give them the name and address of the giftee. If it was not a family member, they will usually not pursue trying to recover on the gift. I believe that technically they have the right to seek to have that debt declared nondischargeable if you transferred it (by gift) without their approval. However, I've never seen any creditor actually try to do this. So, I guess the bottom line is that you've got a better than 50% chance of not having to pay that debt. If you would like a more comprehensive consultation, please visit my website and give me a call.

Regards, Mark

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Answered on 4/30/99, 8:21 pm


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