What will happen to the debt owed to my husband by his brother who is in bankruptcy?
Full Question:
Answer:
Among other reasons, the court may deny the debtor a discharge if it finds that the debtor: failed to keep or produce adequate books or financial records; failed to explain satisfactorily any loss of assets; committed a bankruptcy crime such as perjury; failed to obey a lawful order of the bankruptcy court; fraudulently transferred, concealed, or destroyed property that would have become property of the estate; or failed to complete an approved instructional course concerning financial management.
If the creditor of a discharged debt continues collection attempts it is a violation of Federal Bankruptcy Law and subject to court sanction. A discharged debtor may send a letter telling the creditor that if it continues to try to collect funds that have been discharged under federal Law, an adversary proceeding against the creditor may be filed in the United States Bankruptcy Court. The letter should also enclose a copy of the discharge order. The bankruptcy court has the power to hold the persistent creditor in contempt of court. The court also may fine the creditor.
I am prohibited from giving legal advice, this service provides information of a general legal nature. The effect of your husband filing bankruptcy will depend on all the circumstances at the time of filing and it will be a matter of determination for the court, based on all of the facts involved. You may review the forms at the links below to determine if they suit your needs. An exact dollar amount is not necessarily required to be stated on the complaint. They may be filed without an attorney, but adversary proceedings may require legal expertise due to the complexity of the laws and procedures involved. I suggest you obtain quotes from other attorneys to compare rates. Hourly rates and billing practices vary by attorney.