Legal Question in Bankruptcy in Massachusetts

loan and bankruptcy

My partner made a personal loan 2-3

years ago with no attachments to a man

to do work on his house. This person

never paid anything back and later

declared bankruptcy. To protect his

house, this person had transfered

ownership to his girlfriend-now his

wife. My partner was never informed

about any of this, but just happened to

bump into the guy on the street a year

ago and learned this much-- but no

details about the bankruptcy decision. I

would like to know what his options

are for recovering the money.

Where does he stand legally and what

actions can he consider?


Asked on 8/14/06, 11:46 pm

1 Answer from Attorneys
Barry Levine Law Office of Barry R. Levine

Re: loan and bankruptcy

If the transfer of the house was made within one year of the bankruptcy filing, it should have been disclosed on the debtor's schedules and statement of affairs. If it was beyond one year, the Chapter 7 Trustee typically at the section 341 meeting asks the debtor if s/he has owned any real estate within (depending upon the trustee) four years, six years, etc. Did your friend attend the section 341 meeting? If so, did the trustee make this inquiry. If the transfer of the real estate to his girlfriend remains undisclosed, your friend should contact the chapter 7 trustee and clue him in about this. Whether the trustee will do anything about this would probably depend on the existence of equity in the real estate.

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Answered on 8/15/06, 8:53 am


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