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I loaned $4,500 to a corporation I was working for. It is owned by my relatives. Where should I list this on Schedule B?

Nashville, TN |

Filing Chapter 7 Voluntary Petition.

There is no timeframe requirement for repayment. They will if they become able to.

To the extent that it does not exceed the maximum allowable exemption amount, am I able to claim this as type of item on Schedule C?

Attorney Answers 4

  1. Best answer

    The $4500 owed to you will be considered an asset of your bankruptcy estate. Whether or not the trustee will take this asset depends upon what your exemptions (protected assets) are in TN. You list assets on Sch.B and exemptions on Sch.C. Meet with an attorney and do not try to do this on your own.

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  2. You need to claim this as an asset on Schedule B and see if you can exempt it. One thought, though - since there appears to be no repayment schedule or actual loan documentation, are you certain that this is an actual "loan" requiring repayment? It may also be considered a gift - speak with your bankruptcy attorney about this.

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  3. I would list it on Schedule B as money owed to you. In Ohio, there is no exemption for money loaned to an unsecured creditor. If the Company put up collateral for the loan, was there a UCC filing? Secured, you might get paid, if the Company files bankruptcy, and you are unsecured, you will get little to nothing.

    This answer is general and is not intended to create an attorney client relationhsip and is for informational purposes only.

  4. Check with a TN bankruptcy attorney, as the state vs. federal exemptions may determine how much (if any) how can protect.

    As for listing on schedule B, it should definitely be listed. It sounds like it could be an "other" type of asset/claim, and local counsel would be able to assist you further.

    Best of luck!

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