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socrateaser, Attorney
Category: Bankruptcy Law
Satisfied Customers: 39009
Experience:  Attorney and Real Estate Broker -- Retired (mostly)
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someone who owes me money has filed for no asset chapt 7 bankruptcy.

Customer Question

someone who owes me money has filed for no asset chapt 7 bankruptcy. if i file a proof of claim, may i then claim the amount of the debt as a loss on my income tax? apparently, there is no chance i will be able to collect from the debtor
Submitted: 7 years ago.
Category: Bankruptcy Law
Expert:  socrateaser replied 7 years ago.

Yes. Your proof of claim form would be evidence of the uncollectable character of the debt, in the event that you are ever audited.


Hope this helps.


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Customer: replied 7 years ago.
if this guy is really broke, is this my best option? if i don't file a proof of claim form, can i continue to try to collect?
Expert:  socrateaser replied 7 years ago.

You cannot continue to collect. If you do, the debtor can file a contempt motion with the bankruptcy court and you will be hit with punitive damages for willfully violating the automatic bankruptcy stay. Then you will owe the debtor, which is probably not what you want.


The only other option is to file an "adversary complaint" with the bankruptcy court and try to show that the original debt was procured from you by fraud. This is a very expensive litigation option, and you may lose -- so unless your debt is at least $10,000, you're probably wasting your time.


You can discuss this with a local bankruptcy attorney. For a referral,see: and



Hope this helps.