Holding a Note on a Payor under Bankruptcy - Posted by Jeff

Posted by Bruce Lawson on April 23, 2001 at 19:10:51:

Hi Jeff
Was the note included in the bankruptcy? If he filed chapter 13 then he will continue paying that note,the court will pay all of his bills from one payment he will be responsable to pay the court. He may have to list you as a debtor I am not real sure.

If chapter 7 was filed then everything gets eliminated you will have to make the decision on weather or not you want him to continue paying your note or not.

Actually both cases you will be forced to make the decisions on the note because it sounds like it is yours in the first place. Sometimes assisting friends can be hard. By him filing may free up funds and you will not have to worry about the payments.

Sincerely,

Bruce Lawson

Holding a Note on a Payor under Bankruptcy - Posted by Jeff

Posted by Jeff on April 23, 2001 at 13:51:32:

What happens when you are the payee collecting payments from a Payor on a Note, and then the Payor files bankruptcy. Does the Payee lose all the invested capital? Is it just a lost cause?