Legal Question in Real Estate Law in Maryland

Enforcing a promissory note, if a person has dececided to file for bankruptcy?

Issue: I sold my sister a car for my niece; in good faith I signed the title over to my niece and had my sister sign a promissory note to pay me $1000.00 when she received her income tax money. My sister has received her income tax money and has told me that she will not and does not have to pay me because she is going to file for bankruptcy. Am I within my rights to sue her?


Asked on 2/20/10, 8:01 am

2 Answers from Attorneys

Lesly Longa Longa Law P.A.

Yes. Take her to district court (small claims) and get a judgment. Be sure to ask for your court costs too. Even if she files for bankruptcy, she will still have to pay her debts. Collection can be difficult, but check your local court's website for more information. There is also good info at: http://www.oag.state.md.us/Consumer/smallclaims.pdf

Regards,

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Answered on 2/25/10, 8:41 am
Daniel Press Chung & Press, P.C.

You can sue her, at least until she files bankruptcy. But if and when she files, the lawsuit and all collection efforts will have to stop. Ms. Longa is simply wrong about your sister having to pay her debts if she files bankruptcy - the whole purpose of bankruptcy is to avoid having to pay one's debts.

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Answered on 2/25/10, 9:08 am


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