Is there any legal recourse for us to recover the money we are owed when someone files bankruptcy?
Full Question:
Answer:
I cannot give you legal advice, but generally speaking there are two sorts of individual bankruptcy: Chapter 7, and Chapter 13. Chapter 7 is a liquidation of the debtor's property, while Chapter 13 is a repayment plan. You'd be more likely to receive relatively more money if the debtor is filing a Chapter 13 bankruptcy. You'll likely receive relatively little if a Chapter 7 is being filed.
Most importantly, you need to go to whatever hearing(s) you receive notice of, preferably after you have consulted with, and perhaps retained, a local bankruptcy attorney. Only a local bankruptcy attorney can assess your situation and give you a legal opinion regarding your best course of action and the likelyhood and amount of possible recovery by you.
More information on bankruptcy can be found here:
http://definitions.uslegal.com/b/bankruptcy/