Collecting Personal Loan After Bankruptcy

I am often asked this question: “I loaned by friend money, now he claimed bankruptcy, what can I do?” Often, the sad answer is not much. You can hope for a voluntary payment of debt after bankruptcy discharge. Sometimes, but not often, a debtor may feel some moral obligation to repay a debt discharged in bankruptcy. The Bankruptcy Code does not prevent a debtor from voluntarily repaying any debt after discharge. See 11 USC § 524(f); In re Bowling (BC SD IN 1990) 116 BR 659, 664.

Another option is a a postpetition agreement in which the debtor assumes the same obligations that existed under the first agreement, and that will be treated as a reaffirmation agreement subject to the § 524 requirements. But be careful that a postpetition agreement supported by consideration separate from the original debt that was discharged in the bankruptcy because this will be considered a separate agreement (i.e., not a reaffirmation agreement). See In re Getzoff (9th Cir. BAP 1995) 180 BR 572, 575; In re Watson (9th Cir. BAP 1996) 192 BR 739, 747–748.

If you have any questions about bankruptcy, please call the Law Office of Mark Abell today at: (310) 953-8191.