Legal Question in Bankruptcy in North Carolina

Re: debtors rights on personal bankruptcy

Hi -

It's Christmas Eve so I'll only be able to offer you a brief reply.

A couple of things to keep in mind should this relative decide to file for bankruptcy: First, when filing for bankruptcy, the bankruptcy debtor is not permitted to pick and choose among the debts and liabilities to be included in the bankruptcy, or to "prefer" one creditor over another - this relative will be required to identify you as a creditor and will be required to assign a dollar amount to his or her debt to you; Second, having said that, once filing for bankruptcy and after listing assets, debts and liabilities, the bankruptcy debtor may, generally speaking, "reaffirm" certain debts and remain obligated to pay those debts even after they are discharged in bankruptcy.

So, you may not be completely out of luck if this relative does file for bankruptcy, you might receive what you are owed eventually - but I would caution you against being a party to hiding this debt from the bankruptcy court or from this relative's other creditors.

My name is Len Foy and I am an attorney with the Law Offices of Gould & Gould in Londonderry NH. Our office telephone is 603.434.3437. If you have any other questions you are welcome to contact me directly at Gould & Gould.

Good luck & Merry Christmas!

Regards - Len Foy