Legal Question in Bankruptcy in Illinois

embezzled funds

iCertain types of debts are not discharged in a bankruptcy - if you obtained the funds while acting in a fiduciary capacity, for example, that would not be discharged - whether the embezzlement was criminal or not is not - the facts surroundiong the obtaining of the funds must be examined before a complete

This transmission does not create an attorney-client relationship. We will not represent anyone without a written agreement signed by all parties. Answers to questions are for general information only and should not be construed as legal advice in any particular jurisdiction. If you need legal advice for a specific problem, seek the services of a knowledgeable attorney in your area.

Pre-filing agreement to repay debt

Any agreement made prior to filing your bankruptcy becomes void when you file. As the attorney who prepares the bankruptcy will tell you, after you file you will be required to submit a "Statement of Intention" regarding secured debts.

The creditor from whom you embezzled the money can get an order from the bankruptcy court that your debt is not dischargeable because it was incurred dishonestly and you will have to repay the debt, bankruptcy or not.

The criminality of your action(s) is a question independent of the bankruptcy. Filing bankruptcy after making an agreement to repay a debt incurred by embezzlement is in no way criminal.

Do be sure to have a lawyer prepare your bankruptcy petition for you. Do-it-yourself bankruptcies get thrown out every day - and you are then out the $150 filing fee.

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