About Robert Vitt Expertise I am able to answer general questions regarding Chapter 7 and Chapter 13 bankruptcy cases. I have particular experience in personal (i.e., non-business) bankruptcies. I am unable to answer any questions pertaining to Chapter 11 bankruptcies.
Experience www.bankruptcy-ie.com
I am admitted to practice in the Central District of California and currently run my own law firm which specializes in bankruptcy.
Organizations San Bernardino County Bar Association, California State Bar
Education/Credentials Bachelor of Arts, Philosophy
Master of Business Administration
Juris Doctor
Master of Arts, Philosophy
Past/Present Clients I have had a variety of clients throughout my career. However, my immediate past clients have been predominantly individuals filing for debt discharge under Chapter 7.
Question Before I married my husband, he loaned a female friend a significant amount of money, and got a signed promissory note. For a while, she maintained payments or worked off the debt (construction work), although we constantly had to pursue her. My husband has detailed records, and has sent her a statement as a receipt after each payment. Finally the payments stopped (after we married), and after a time, we sued her. That was about two years ago. It has been a long battle: during the suit, she changed lawyers once, creating a delay. Then, our court date was changed. She took advantage of this delay to file for bankruptcy. I am not sure if it's Chap. 7 or 13. Then we had to get a bankruptcy lawyer. We have correspondence indicating that she has listed us as an "unsecured creditor" (I think that's the term), and for an amount that was approximately 1/10 of what she owes us. We just heard today that she has changed lawyers. The principle is about $16,000, with late fees, interest and attorneys fees making that about $20,000. We do have some jewelry that she left as collateral. In the meantime, we are paying interest on the loan my husband made, and it is creating a hardship for us. I am not altogether sure our attorney is advocating for us aggressively. I believe there is an emotional and abusive component, as my husband felt it was necessary to discontinue the friendship, and shortly thereafter the payments stopped.
Answer Ellen,
I am not sure what your question is...so I will give you a response based on a detail you provided to me.
If you were an unsecured creditor and she gets a discharge, then you are out of luck.
But I would advise you that you are NOT an unsecured creditor if she left you jewelry as collateral!
Mention to your attorney that you are not an unsecured creditor. It is possible then that your debt survives her bankruptcy. This well could make a difference.
I hope this helps, I understand litigation at times is so incredibly frustrating and rarely is anyone pleased with the result.
