Legal Question in Business Law in Maryland

debt owed after bankruptcy
We rec'd a no asset Joint Chap 7 bankruptcy discharge after business failure a couple of months ago. When we were in business we did a foolish thing trying to pay our employees. We sold a piece of equipment that had a ien on it to a friend....he knew about the lien. He also knew about the bankruptcy petition before discharge. Our attorney had us list the lien holder but not this person as a creditor. We had hoped to reaffirm loan with creditor so friend could keep equip. This has not happend and equip will be repossessed. We have now offered $26K, borrowed from relatives, to friend since this is current market value of item supported by auction results and Ebay sales. Friend wants what he paid us though item is now older and used. We cannot come up with the sum he wants since we still are struggling financially from the bankruptcy. The lien holder won't take the $25K either not to repo the machine...they want total of lien which is impossible for us. What should we do? We are trying to right the wrong but getting nowhere.

Asked on 4/13/08, 8:44 am

Daniel Press Chung & Press, P.C.

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Re: debt owed after bankruptcy

"Friend" has no claim - it was discharged. But lienholder has a right to the full lien amount or can repossess.

Answered on 4/13/08, 11:17 pm

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