My San Diego Ch 7 bankruptcy attorney incorrectly told me (several times) that I only needed to wait 6 months after a $10,000 loan repayment to my mother before filing for BK. (I later discovered it is considered preferential payment if within 12 months prior.) After the BK discharge, the trustee went after my mother for repayment. My mother (from Wisconsin), has had to hire an attorney who negotiated the amount to $7,500. My mother's attorney then demanded the BK attorney pay this amount as she was an intended beneficiary. He finally agreed to pay $4,000 for her release, which my mother will accept. When I can, I will repay my mother the balance ($3,500, plus her attorney fees). Can I then take the BK attorney to small claims court for this amount (as well as my fees to him)?
Bankruptcy is a legal way for people or businesses who are no longer capable of paying back their bills to clear these debts and start over.
Chapter 7 bankruptcy is a form of bankruptcy where your debts are canceled, but some of your assets are sold to pay off part of your debt.
by attorney Josh Johnson
Many bankruptcy clients wonder why civil judgments (for credit card debt and other types of debt) still appear on their credit reports even after... more