Legal Question in Bankruptcy in Illinois

I made an unsecured business loan to an individual. This person is now filing a no-asset chapter 7 bankruptcy. Will the business loan be considered dischargeable, or can I dispute it since it was not a personal loan.


Asked on 8/22/09, 12:34 pm

1 Answer from Attorneys
Adam S. Tracy Securities Compliance Group Ltd

Thank you for your question. The first question that I have for you is whether you made the loan to the business or to the individual? Who is in bankruptcy, the individual or the business? One option for you may be to allege fraud. Debts incurred via fraud can be proven to be non-dischargeable in bankruptcy. You would have to file what is called an adversary complaint to allege and prove fraud. I would be happy to speak further with you regarding your options. Feel free to email me: [email protected]

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Answered on 8/27/09, 12:40 pm


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