Legal Question in Real Estate Law in California

loan fraud?

I made a loan (second trust deed) to a man who never made a payment. It was a short term loan - 6 months and he only sent one check that bounced. He is now trying to rescind the loan & I believe the purpose is to make it an unsecured loan. He is filing chapter 13 to try and weasel out of paying. Can I sue him for loan fraud?


Asked on 10/02/07, 2:26 pm

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

Re: loan fraud?

You may not sue him or do anything else to collect on the loan while a bankruptcy petition is pending. Be sure to file a claim in bankruptcy and to attend the meeting of creditors (you will be able to ask him questions under oath if you like). Contact the attorney who did your 2nd TD and ask if he or she can help.

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Answered on 10/02/07, 2:32 pm
Ryan P. McClure The Law Offices of Ryan P. McClure

Re: loan fraud?

Fraud is very difficult to prove. In saying that, I would take Mr. Stone's advice and seek representation on this matter and get involved in the Bankruptcy proceedings.

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Answered on 10/02/07, 3:51 pm


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