Legal Question in Credit and Debt Law in California

Re: investment scam

Your sister might be a good candidate for bankruptcy. If the debts are discharged, this would be a permanent court order that would prohibit your sister's friends from trying to collect any more from her. She should go to the website for the National Association of Consumer Bankruptcy Attorneys to find someone to help her.

Re: investment scam

I am really sorry to hear about your sister's problem. Sounds very familiar given the rash of investment schemes in the news these days. To answer the later part of your question, the document they had her sign is going to be an issue. Depending on what it says, it may be a simple promise to repay the money, in which case it should be dischargeable in bankruptcy. If it was well-drafted, it could contain some admission by your sister that she obtained the money through fraud or deceit, in which case she might not be able to discharge what they argue she owes them in Bankruptcy. She needs to sit and review the entire matter with a bankruptcy attorney. If she lives in the zip-code you provided, she is not that far from me, and I would be more than happy to meet with her and provide her with a free initial consultation. Again, sorry to hear about the problem.

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