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cfortunato, Attorney
Category: Bankruptcy Law
Satisfied Customers: 8023
Experience:  Bankruptcy professor.
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I loaned an individual owner of a company $50,000. There is

Resolved Question:

I loaned an individual owner of a company $50,000. There is a signed Loan Agreement laying out the terms of repayment over the period of two years, including interest, that began on September 1, 2010. The September, October, November, and December payments were made. Now, the owner of the company has informed me that she has filed bankruptcy and will no longer be making the monthly payments on the loan. She owns a home and the property where the company operated. What are my rights and what steps should I take?
Submitted: 6 years ago.
Category: Bankruptcy Law
Expert:  cfortunato replied 6 years ago.

Hi JACustomer,

When the individual files the Bankruptcy, you will be sent a notice of the filing, and instructions on how to file a "Proof of Claim". These are sent to all the creditors (a "creditor" is any person or company a "debtor" owes money to) this individual has. If there is enough equity in her home and property, these will be taken and sold to pay the creditors proportionately, according to how much money is owed to each creditor.

I think this is what you wanted to know. If not, please let me know.
Thank you!

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