united states bankruptcy
Personal Bankruptcy in the U.S.
January 30, 2007 10:36am CST
I hope that some of you in the U.S. might have some thoughts and comments on a bankruptcy situation. I started a discussion, when I first joined myLot, about a new in-law who wrote me a bad check while visiting for our wedding. This in-law made absolutely no attempt to pay me back, even though my husband and I offered many options (such as paying small amounts, even $20, on a regular basis until the debt was paid off). Ultimately, the debt got included, with a pile of others, when the in-law and spouse filed Chapter 13 bankruptcy. After filing, they started divorce proceedings and no one followed through on the bankruptcy plan. They got an extension and were to file an Amended Plan. I received a letter this week that they failed to do so and now the case is dismissed and closed by the bankruptcy court. I've done some reading and believe this means they will now likely file Chapter 7, since they are no longer protected from their creditors?? I'm wondering if, as a creditor, I would be included again in the Chapter 7 filing or does the in-law choose whether or not to include me? I do know I'm never going to see my money again... even if I receive a payment from their bankruptcy, it'll be a small percentage of the actual debt because I am WAY down the list as an unsecured creditor. I'm asking purely out of interest and a desire to understand how this may play out. I'm in Canada and we do not have either Chapter 13 or Chapter 7 ... it works differently here. So, if anyone out there has experience in how these bankruptcies work in the U.S., I'd be interested in learning from you.