Expert: Terry Leeders - 11/29/2008

Question
This takes place in the State of California. A friend I loaned $7500.00 to is filing for bankruptcy (Ch. 7 I imagine). He states he DID NOT include me as one of the creditors. He promises to then dedicate himself to paying me off after the bankruptcy is finalized.

Can I sue him if he does not keep his promise? I know there is a 3-year (or so) time limit before which I must sue.

Thank you for your time.

Answer
IF the debt is listed in the bankruptcy, then you cannot sue unless the debt is reaffirmed during the case.  If a debt is left off of the bankruptcy case, then 1. that is bankruptcy fraud, since the debtor must list all assets and all liabilities.  The bankruptcy code does say that if a debt is not scheduled, then it will not be discharged in the case however.