Legal Question in Credit and Debt Law in California

Re: if I file bankruptcy, do i still have to pay my friend back?

First, you must list all debts you owe when you file bankruptcy. So, the loan from your friend will have to be included in your bankruptcy filing. Unless he has grounds for the loan to be declared non-dischargeable (not likely), then yes, his loan is discharged just like all of your other debt. You would not have to repay the debt to him unless he takes action to have a judge declare otherwise (again, not likely).

On the question of physical address, you must have a physical, street address to file bankruptcy. The reason it is required is you have to demonstrate to the court that it has jurisdiction over your case. If you don't live in, for instance Orange County, you cannot file bankruptcy in the Santa Ana branch of the court. Its what is referred to as a "jurisdictional" issue, and so even if you lie about it, you risk your case being dismissed or your discharge not granted for lack of the Court's jurisdiction. Its really important that somehow you have a physical, street address when you file. If you are in Southern California, email me as there are some options even if you are not living in a home or apartment.

Finally, as to the "claim" your friend filed - I assume he sued you in court. If you don't show up in court, the judge will give him a judgment against you, and he can start attempting to collect the debt. It can still, however, be discharged in bankruptcy even after a judgment is entered against you.

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