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CalAttorney2, Attorney
Category: Legal
Satisfied Customers: 10244
Experience:  Civil litigation attorney for individuals and businesses.
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I have a lawsuit against someone that I loaned 30k to to

Customer Question

I have a lawsuit against someone that I loaned 30k to for him to start his business. We had a verbal contract, but I however also have him on tape stating that he borrowed the 30k and acknowledging he owes me it back. (I'm in GA and knew I legally could record). Anyway it is going before a judge for trial on Monday in ATL. His atty. just called an notified me the guy is filing bankruptcy. He also offered me 2500.00 to settle. I said no. What are my chances on now getting anything?
Submitted: 1 year ago.
Category: Legal
Expert:  CalAttorney2 replied 1 year ago.

If the defendant is actually filing bankruptcy, you will not be able to collect (assuming that his bankruptcy goes through and he gets a discharge) - this kind of debt is dischargeable in bankruptcy meaning that you will not be able to recover anything (even if you were successful in getting a judgment).

You should continue to prepare for trial however, unless and until the defendant actually does file for bankruptcy the state court case will proceed - once he files however, the case will be placed on an "automatic stay" and the trial court will not proceed.

I cannot tell you whether or not this particular debtor's chances of actually filing bankruptcy are sufficient to warrant taking a $2,500.00 settlement, but the above is what will happen if he does in fact file.