Bankruptcy Law Questions? Ask a Bankruptcy Lawyer Now.
There is something you can do. But this can only help you if it is done before the Bankruptcy is filed. Once the Bankrutpcy is filed, there will be little - if anything - you will be able to do to get some of the money your friends owe.
You would have to sue them now, get a judgment, and attach the judgment to any property they currently own. If attached to "non-exempt" property, that attachment, which works similarly to a mortgage, can survive the Bankrutpcy. Unfortunately, if your friends have no property to attach, there is really nothing you can do to get what is owed to you if your friends file a Bankruptcy.
I think this is what you wanted to know. If not, please let me know.Thank you!
Will the bank be able to recover any of the money due or will they just ask us to pay it. What kind of property is non-exempt? How do I know what to attach the judgment to?
If you sue them, you can request "discovery" concerning their assets. This can be an oral deposition or a written interrogatory, which they can be ordered to answer under oath.
DISCLAIMER: Answers from Experts on JustAnswer are not substitutes for the advice of an attorney. JustAnswer is a public forum and questions and responses are not private or confidential or protected by the attorney-client privilege. The Expert above is not your attorney, and the response above is not legal advice. You should not read this response to propose specific action or address specific circumstances, but only to give you a sense of general principles of law that might affect the situation you describe. Application of these general principles to particular circumstances must be done by a lawyer who has spoken with you in confidence, learned all relevant information, and explored various options. Before acting on these general principles, you should hire a lawyer licensed to practice law in the jurisdiction to which your question pertains.
The responses above are from individual Experts, not JustAnswer. The site and services are provided “as is”. To view the verified credential of an Expert, click on the “Verified” symbol in the Expert’s profile. This site is not for emergency questions which should be directed immediately by telephone or in-person to qualified professionals. Please carefully read the Terms of Service (last updated February 8, 2012).