Legal Question in Bankruptcy in Texas

Recovering a loan made by my 81 year old mother

My 81 yr old mother loaned someone 1800 to keep his house out of foreclosure. Supposedly. He has since filed chapter 7 bankruptcy. Is there any way at all to recover her loan short of torture. LOL This is affecting her health big time. The property has been sold but his ex-wife has the deed to the property so we had no claim to it. He does have a paid off car and a boat paid off. Can he be taken to small claims court or does the bankruptcy cover him in that? What are our options?


Asked on 8/27/00, 1:19 am

1 Answer from Attorneys
Lawrence Maun Lawrence J. Maun, P.C.

Re: Recovering a loan made by my 81 year old mother

I am assuming that the transaction occured in Texas and that the Debotr lives in Texas. Your mother apparently made an unsecured loan to the debtor. As to the dobtor it is discharged in Chap. 7 Bankruptcy, unless there is an exception to discharge, i.e. the debotr lied to your mother regarding the circumstances of the loan. If the debt is dischargable, your mother's only source for repayment is from the bankruptcy estate. Typically there are no assets available in a Chap. 7 for unsecured creditors. Look at the notice you received from the Bankruptcy court. If it tells you mother not to file a claim, you can be pretty sure there are no assets to pay unsecured creditors. The debtor's assets you list are generally exempt from creditors claims in Texas.

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Answered on 10/02/00, 4:12 pm


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