Legal Question in Bankruptcy in Oregon

If your family member files for a Chapter 7 discharge, the answer is probably "yes". The loan must be listed in your family member's bankruptcy petition, and it may be the subject of some scrutiny during the bankruptcy case. On the other hand, if the family member files for a Chapter 13 repayment plan, it is possible that you may be listed as an unsecured creditor, and receive some of the plan payments, depending upon your family member's plan.

Your family member may also choose to pay you back out of a moral obligation. However, if he or she receives a discharge, the legal obligation to repay you is eliminated, and you may not demand payment from him or her.

Justin M. Baxter

Baxter & Baxter, LLP

8835 SW Canyon Lane, Suite 130

Portland, Oregon 97225

(503) 297-9031 (Telephone)

(503) 291-9172 (Facsimile)

Baxter & Baxter, LLP

5635 NE Elam Young Parkway, Suite 300

Hillsboro, Oregon 97124, USA

(503) 681-9752 (Telephone)

(503) 291-9172 (Facsimile)

Baxter & Baxter, LLP

1101 Broadway Street, Suite 213

Vancouver, Washington 98660

(360) 574-5239 (Telephone)

(360) 326-1613 (Facsimile)

http://www.baxterlaw.com